Vodafone Idea issues clarification: No proposal from Google on investment, says telecom major; evaluating various opportunities

Vodafone Idea said currently there is no proposal as reported by the media that is being considered at the Board

FP Staff May 29, 2020 15:59:18 IST
Vodafone Idea issues clarification: No proposal from Google on investment, says telecom major; evaluating various opportunities

Contrary to the Financial Times report,  Google is not planning to invest in it. The telecom major-Vodafone Idea has clarified that "currently there is no proposal as reported by the media that is being considered at the board".

Vodafone Idea on Friday said it constantly evaluates various opportunities but there is no proposal before the board of the firm as yet.

The clarification to the BSE by Vodafone Idea comes a day after reports that Alphabet Inc's Google is eyeing about 5 per cent stake in the telecom company.

"As part of corporate strategy, the company constantly evaluates various opportunities for enhancing the stakeholders'' value. As and when such proposals are considered by the board of directors of the company warranting disclosures, the company shall comply with the disclosure obligations," Vodafone Idea said on Friday.

Currently, there is "no proposal" as reported that is being considered at the board, it added.

"We wish to reiterate and clarify that the company will comply with Sebi Listing Regulations and duly keep the stock exchanges informed of all the price-sensitive information," it said.

Vodafone Idea shares up intraday

Shares of Vodafone Idea Ltd were up 34.87 percent to hit the intraday high of Rs 7.85 per share on the BSE on Friday on reports that Google Inc. is considering picking about 5 percent stake in Vodafone Idea Ltd-a telecom joint venture between Vodafone PLC of UK and Aditya Birla group.

According to a report in Financial Times, Google is  looking to make an investment in the embattled Indian telecom  company.

At 10:52 AM, Vodafone Idea was at Rs 7.56 per share, up 29.9 percent.

On NSE, it rose sharply by 25 percent to Rs 7.25

A combined 352 million equity shares changed hands and there were pending buy orders for 83 million shares on the NSE and BSE, the exchange data shows.

Shares in Vodafone Idea Ltd jumped 25 percent and hit an upper limit after a report that Google was eyeing a stake in the telecom firm.

Tech titan Google is said to be exploring taking a minority stake in British telecom group Vodafone's struggling India business.

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The investment in Vodafone Idea will pit the search giant against Facebook which has picked up a stake in Jio Platforms, the firm that houses India's youngest but biggest telecom company, Reliance Jio, according to a PTI report.

Alphabet Inc's Google is looking to buy about 5 per cent stake in Vodafone Idea Ltd, the Financial Times reported on Thursday.

Both companies refused to comment.

 

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