By Krishna V Kurup
The issue will increase the number of Vodafone Idea shares by 229%, diluting it to 28.74 billion outstanding shares.
RCom said the airwaves deal had been called off by “mutual consent” due to objections from India’s telecom department and more than 40 of the company’s foreign and domestic lenders.
Xiaomi Singapore Pte Ltd has invested in the Indian entity in two tranches in January and March, respectively, this year.
Singtel is keen to expand beyond its traditional carrier services into areas such as digital marketing, cybersecurity, mobile payments and video streaming.
After the rights offering, Singtel’s effective interest in Airtel will be 35.2 percent. Singtel has a direct equity stake of about 15 percent.
The board has also authorised the committee to prepare for the rights issue and bond sale immediately.
With a national election looming in April, it remains uncertain if any reform on spectrum transfer can be made in time.
The company is looking to expand its presence in three more regions including India.
The merged company will take on industry leader, Safaricom which is partly owned by Johannesburg-based Vodacom Group Ltd.
SoftBank Corp CEO Ken Miyauchi said new services and the adoption of high-speed 5G networks meant the smartphone market had ample room for growth.