UK-based Vodafone Group mentioned on Tuesday its potential publicity to Indian telecom three way partnership Vodafone Concept Ltd (VIL) is capped at ₹8,400 crore (€1 billion).
“The group’s potential publicity below this mechanism (phrases of the merger take care of Concept) is capped at €1 billion and any money funds or money receipts relating to those contingent liabilities and potential refunds should have been made or obtained by Vodafone Concept earlier than any quantity turns into due from or owed to the group,” Vodafone mentioned.
The group has a possible publicity to sure contingent liabilities and potential refunds regarding VIL and Concept Mobile on the time of the merger, together with these regarding the Supreme Courtroom’s adjusted gross income (AGR) judgment. Underneath this settlement, Vodafone Group and Vodafone Concept will reimburse one another on set dates following any crystallisation of those pre-merger liabilities and belongings, it mentioned.
VIL’s AGR liabilities stand at ₹53,038 crore. The group had entered into an settlement to merge VIL and Concept Mobile in July 2018.
The group has assessed a money outflow of €235 million below the settlement to be possible at the moment.
On April 22, the group introduced that it had made an advance fee of $200 million to Vodafone Concept for quantities which can be more likely to be due in September 2020.
Indus Towers deal
The group has prolonged the lengthy cease date on its settlement to merge Indus Towers (a three-way three way partnership between Bharti Infratel, Vodafone Concept and Vodafone Group) and Bharti Infratel to June 24, it mentioned.
In April 2018, Bharti Airtel, Concept Mobile (together with its subsidiary ABTL and Concept Group) and Vodafone Group entered into an settlement to merge Vodafone’s, Concept Group’s and Windfall Fairness Companions’ stakes in Indus Towers into Bharti Infratel, making a mixed firm that can personal 100 per cent of Indus Towers.
For FY20, the Vodafone Group has posted an annual lack of €455 million, in comparison with losses of €7.64 billion a yr in the past. Its share of losses associated to VIL (€2.5 billion) is principally attributable to antagonistic Supreme Courtroom rulings in India, and the group carrying worth of VIL has been decreased to nil, it added.