New Delhi: The day after the idea of Vodafone Ltd chose to change interest in contributions to government equities, the CEO on Wednesday said the government had made its position clearly clear that it did not want to run telco, and added that the existing promoter was fully committed.
To manage and run the company’s operations.
The idea of Vodafone (VIL) on Tuesday announced his decision to choose to convert around RS 16,000 Crore Fee contributions paid to the government to equity, which will amount to around 35.8 percent of shares in the company.
If the plan passes, the government will become the largest shareholder in a company that is shaken under the debt load around Rs 1.95 lakh crore.
VIL and CEO Ravinder Director Takkar told reporters in a virtual briefing that there was no condition in the telecommunications department letter on the equity conversion option, which allowed the board seat for the government.
The existing promoter is fully committed to managing and running the company’s operations, he asserts.
“In all our interactions with the government lead to the package and even after the package announcement, it has been clearly declared by the government that they do not want to run the company.
They do not have the desire to take over the company’s operations …
they want three private players on the market, They don’t want duopoly or monopoly, “said CEO Vil.
The government has “clarified they wanted this company promoter to run it forward,” he said, adding that Vil expects no change in their position.
Furthermore, Takkar said he expected the whole process to conclude in the coming months.
At the thought of the decision, the Top Vil boss said that considering the majority of Telco debt was to the government, “it is clear to us that changing debt to equity is a good choice for companies to reduce advanced debt”.
Because the average price of the company’s shares relating to the relevant date is below the nominal value, equity stocks will be issued to the government with a nominal value of Rs 10 per share, clearly.
Post-conversion, ownership of the Vodafone group in the company will drop to around 28.5 percent, and Aditya Birla Group becomes around 17.8 percent.
The government does not want to run the company, said CEO VIL
