London: Vodafone may have to slash about 1 billion euros off the book value of its Indian venture that’s reeling from spectrum payment demands and a ruthless price war.
According to analysts, the Company could write down its 45 percent stake in Vodafone Idea Ltd. to around 600 million euros in half year from 1.6 billion euros in May.
Nick Read, Vodafone Chief Executive Officer is trying to keep shareholders onside following a dividend cut by focusing on Europe and Africa. He stated that he sees the best chances of defending profits in these regions and decided not to divert more group funds to the Indian business as the shares have lost more than two-thirds of their value since May.
The Supreme Court, last month, ruled that Vodafone Idea must pay $4 billion in past dues on airwave licenses. With Reliance Jio entering the market in 2016, it has undercut Vodafone and other leading carrier, Bharti Airtel Ltd.
According to analysts, Vodafone Idea may try to tap into the value of its local infrastructure assets to raise fresh funds.