Vodafone Idea shares jump over 2% on divestment move

Stock market today: Shares of Vodafone Idea gained 2.15% in early morning trade on Tuesday, January 7, to reach ₹8.06 apiece after the company informed investors that it has entered into a share purchase agreement with iBUS Network and Infrastructure Private Limited for the transfer of the company’s entire shareholding in Firefly Networks.

"The company has entered into a share purchase agreement with iBUS Network and Infrastructure Private Limited for the transfer of the company’s entire shareholding (i.e., 50%) in Firefly Networks Limited. (“Firefly”), subject to completion of closing conditions, for a consideration of ₹45 million. Upon transfer of the aforesaid shareholding, Firefly would cease to be a joint venture of the company," said the company in a regulatory filing on Monday.

The completion is expected within 30 business days from the date of execution of the agreement.

FireFly Networks is a joint venture between Vodafone Idea Limited and Bharti Airtel Limited, wherein the company and Bharti hold a 50% stake each.

Firefly oversees and monetises Wi-Fi hotspots by delivering top-notch Wi-Fi infrastructure to partners such as educational institutions, hospitals, malls, cafes, public spaces, markets, transit hubs, and corporate parks in major Indian cities.

In a similar move, Bharti Airtel has also signed a share purchase agreement with iBUS Network and Infrastructure to sell its entire 50% stake in Firefly Networks, as per the company's Monday filing. Once completed, Firefly will no longer be a joint venture of Bharti Airtel.

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