Amazon And Verizon Communication to Invest $4 Billion In Vodafone-Idea
Vodafone-Idea is struggling financially to operate its business due to decrease in revenue and AGR that they need to pay to the government.
US wireless carrier Verizon Communications Inc and Amazon.com Inc may invest quite $4 billion for a stake in India’s Vodafone Idea Ltd, a business daily reported on Thursday, sending shares within the struggling Indian telecom arrange 10%.
Vodafone Idea’s stake-sale talks had been paused pending the result of a court hearing in India, which created uncertainty and could have threatened Vodafone Idea’s survival, the newspaper reported, citing two unnamed people conscious of the negotiations. But Amazon and Verizon Communications are set to resume discussions following a Supreme Court ruling on Tuesday which gave mobile carriers 10 years to settle government dues.
Heavily indebted Vodafone Idea – a venture between Britain’s Vodafone Group Plc and India’s Idea Cellular – had previously said its ability to continue as a going concern rested on a positive outcome of the hearing. It has paid the Indian government $1.1 billion in telecoms dues, consistent with regulatory filings, but still owes roughly $6.8 billion more.
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