iWorld
Bharti Airtel prepays Rs 3,626 crores to clear 2016 spectrum liabilities
MUMBAI: Imagine the weight of debt lifting off your shoulders-the sheer relief, the freedom, and the excitement of a stronger financial footing.
Now, picture that feeling at a corporate scale.
Bharti Airtel, India’s telecom giant, has just experienced that moment of exhilaration.
Today, by prepaying Rs 3,626 crore to the Department of Telecom, settling its spectrum dues from 2016, Airtel has hit a major financial milestone. The move isn’t just about clearing debts—it’s a bold stride in optimising its fiscal health and saying goodbye to high-cost liabilities, all while strengthening its financial backbone.
The company has prepaid a total of Rs 28,320 crores in spectrum liabilities during this calendar year, clearing dues that carried interest rates exceeding 8.65 per cent. The prepayment demonstrates Airtel’s commitment to improving its balance sheet and strengthening its financial flexibility.
In June, the Sunil Mittal-promoted telecom operator prepaid all its deferred liabilities for spectrum acquired in the 2012 and 2015 auctions, where interest rates were higher at 9.75 per cent and 10 per cent. The prepayment for these auctions amounted to Rs 7,904 crore. Earlier in the year, Airtel had also prepaid Rs 8,325 crore to the government, clearing part of its deferred liabilities for the spectrum acquired in the 2015 auctions. In 2015, Airtel secured 111.6 MHz of spectrum for Rs 29,130.20 crore, with an upfront payment of Rs 7,832.58 crore, as per the auction rules at that time.
iWorld
Universal Music to sell half its Spotify stake, expand buyback plan
Ackman pressure mounts as label posts €2.9bn revenue and strong subscription growth
HILVERSUM: Universal Music Group has unveiled plans to sell half of its stake in Spotify and double its share buyback programme to €1 billion, signalling a sharper capital strategy as investor scrutiny intensifies.
The company said it will launch an additional €500 million buyback after completing the €500 million programme announced in March, taking the total authorisation to €1 billion. Proceeds from the Spotify stake sale will help fund the buyback and will also be shared with artists, in line with long-standing commitments.
The move comes amid pressure from billionaire investor Bill Ackman, whose firm Pershing Square Capital Management holds over 4.5 per cent of UMG. Ackman recently made an unsolicited offer valuing the company at around $64 billion to $65 billion and has argued that the label’s shares are undervalued.
As part of his proposal, Ackman suggested selling the entire Spotify stake to raise €1.5 billion after taxes and artist payouts, while also pushing for a US listing and changes to the company’s financial reporting structure. UMG’s board has instead opted to move independently, approving a partial stake sale on its own terms.
The decision also aligns with what is informally known as the “Taylor Swift clause”, a commitment made when Taylor Swift re-signed with the label in 2018, ensuring that any proceeds from Spotify stake sales are shared with artists on a non-recoupable basis.
With investor pressure building and strategic levers now in motion, UMG appears to be striking a careful balance between rewarding shareholders and reinforcing its long-term growth play in the streaming era.
