Vodafone Idea to get about Rs 5,836 cr from Vodafone Group as part of a liability pact

New Delhi, Dec 31 (PTI) Beleaguered telecom operator Vodafone Idea will receive around Rs 5,836 crore from Vodafone Group as part re-settlement of a liability claim pact between the two companies, according to regulatory filings of both companies.

Under the revised agreement, Vodafone group promoters will release Rs 2,307 crore over the next 12 months for Vodafone Idea as per the the terms agreed in the amendment agreement.

Vodafone Group has also set aside its 328 crore shares held in Vi for Vi's benefit.

Vi will have the right to instruct Vodafone to sell these shares, in one or more tranches, with any cash proceeds being transferred to Vi.

As on the date of the amendment agreement, the market value of the earmarked shares stands at Rs 3,529 crore, Vi filing said.

A Contingent Liability Adjustment Mechanism (CLAM) was entered between Vodafone Group and Vodafone Idea (Vi) at the time of the 2017 merger agreement between Vodafone India and Idea Cellular and covers pre-merger contingent liabilities in relation to legal, regulatory, tax, and other matters of the two merging parties.

Under the CLAM, Vodafone's maximum exposure was capped at Rs 8,369 crore at the time of the merger and taking into account payments already made, the reduced exposure was capped at Rs 6,394 crore and the deadline for the pact after an extension was December 31, 2025.

However, consequent to the amended terms of the IA (Implementation Agreement) signed by the two firms a sum of approximately Rs 5,836 crore is now receivable by Vi, according to the filing. PTI PRS TRB