Vodafone Idea clarifies on reports of Google eyeing a stake in company

Vodafone Idea today clarified that "currently there is no proposal as reported by the media that is being considered at the board", with reference to reports that said that tech titan Google was eyeing a minority stake in the British telecom group’s struggling India business.

Reacting to the reports, stock of the company rallied about 35% at day's high on BSE.

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.

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

The move assumes significance as Vodafone Idea - where Vodafone holds just over 45% stake - is staring at nearly ₹58,000 crore in unpaid statutory dues.

The BSE had sought clarification from Vodafone Idea with reference to reports. Vodafone Idea shares were up 15% in late trade.

Here is what Vodafone Idea said in a communication to exchanges:

"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 under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulation”). Currently, there is no proposal as reported by the media that is being considered at the Board.

We wish to reiterate and clarify the Company will comply with SEBI Listing Regulations and duly keep the stock exchanges informed of all the price sensitive information."

(With Agency Inputs)