New Delhi: US-based American Tower Corp on Wednesday announced that it will buy a majority stake in telecom tower firm Viom Networks for Rs 7,635 crore in an all-cash deal.
This is one of the biggest FDI deal in 2015. Viom currently owns and operates around 42,200 wireless communications towers and 200 indoor distributed antenna systems across India. The stake will be acquired from SREI Infrastructure Finance, Tata Teleservices and other minority stake holders. At closing, Tata Teleservices will retain a part of its holding, with Macquarie SBI Infrastructure Investments Pte Limited, SBI Macquarie Infrastructure Trust and IDFC Private Equity Fund III retaining certain interests, the company said.
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. According to the deal post-closing, American Tower’s existing Indian portfolio of 14,000 towers will be merged with Viom, resulting in certain ownership adjustments. Tata Teleservices owns 54 per cent of Viom, with Kolkata-based SREI Grop of Kanoria family holding about 18 per cent with management control.
