Vodafone Group made an accelerated payment of $200 million to Vodafone Idea to support its India joint venture’s operations as it faces increased tax liabilities and the effects of the Covid-19 (coronavirus) pandemic.
The payment, under the terms of a contingent liability agreement with Vodafone Idea, was due in September.
As part of the original deal to merge Vodafone India and Idea Cellular in August 2018, a $1.2 billion sum was set aside by the parties to cover historical liabilities. In a statement last week, Vodafone noted any further payment made would be from this fund [1]and not new money.
Vodafone CEO Nick Read has gone on record numerous times to assure shareholders no further funds would be spent [2] on the JV.
Earlier in the week, Vodafone Idea made a payment of about INR13 billion ($171 million) in licence and spectrum fees for the first quarter of 2020, The Economic Times reported.
The operator claims it owes INR215 billion [3]in unpaid adjusted gross revenue dues, based on a self-assessment of its liabilities, compared with the INR530 billion the Department of Telecommunications ordered it to pay. The operator said it paid the full principal amount [4] owed of INR68.54 billion.
[1] https://www.mobileworldlive.com/featured-content/home-banner/vodafone-denies-u-turn-over-india-jv-bailout/
[2] https://www.mobileworldlive.com/featured-content/home-banner/vodafone-chief-vows-to-end-india-losses/
[3] https://www.mobileworldlive.com/asia/asia-news/vodafone-idea-tipped-for-additional-agr-payment/
[4] https://www.mobileworldlive.com/asia/asia-news/vodafone-idea-makes-headway-in-agr-payment/
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