ATC to acquire 51% stake in Viom

ATC to acquire 51% stake in Viom
Highlights

ATC to acquire 51% stake in Viom . In a largest FDI inflow in to telecom sector, the US-based American Tower Corp (ATC) has agreed to buy a majority stake in telecom tower firm Viom Networks for Rs 7,635 crore in an all-cash deal.

New Delhi : In a largest FDI inflow in to telecom sector, the US-based American Tower Corp (ATC) has agreed to buy a majority stake in telecom tower firm Viom Networks for Rs 7,635 crore in an all-cash deal.

ATC will buy 51 per cent stake in Viom, which owns and operates about 42,200 towers and has another 1,000 mobile phone masts under construction, from Tata Tele and SREI Infra Finance.

"Under the agreement, American Tower may acquire or be required to acquire all or a portion of the remaining 49 per cent ownership stake in Viom," it said in a statement. Also, as a pre-condition for the deal, ATC's existing 14,000 telecom mobile masts will be merged with Viom.

This will result "in certain ownership adjustments," the statement said without elaborating. Tata Tele Ltd owns 54 per cent of Viom, with Kolkata-based SREI Group of Kanoria family holding about 18 per cent with management control.

Singapore state investor GIC, Macquarie SBI Infrastructure Fund, Oman Investment Fund and IDFC Private Equity are other investors in the company. ATC will buy all SREI's 18.50 per cent stake and will also acquire stake from other shareholders.

"Tata Teleservices stake will come down to about 34 per cent from current 54 per cent now and further it would get reduced to 26 per cent after ATC merges its Indian business with Viom," said Sunil Kanoria, VC, Srei Infra.

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