Macquarie SBI buys into Indian tower firm

Macquarie SBI buys into Indian tower firm

Dylan Bushell-Embling  |   August 12, 2010
telecomasia.net
A consortium led by infrastructure management firm Macquarie SBI has bought 11% of Indian tower company Viom Networks for 14 billion rupees ($300.4 million).
 
Macquarie SBI - a joint venture between Australia's Macquarie Capital and the State Bank of India – bought the company formerly known as Quippo-WTTIL through its $1 billion infrastructure fund.
 
While the identity of the other party in the consortium was not revealed, sources told the Business Standard it could be US turnaround company WL Ross & Co.
 
Viom, which owns around 37,000 towers hosting around 80,000 tenants, said it would use the funds to become debt free.
 
The venture wants to add up to 25,000 more towers to its portfolio over the next two years, and increase the proportion of tenants using each tower.
 
Viom was created in 2009 after a merger of the tower businesses of Quippo Telecom Infrastructure and Tata Teleservices.
 
It has an enterprise value of around $4.3 billion, the Standard said. At the time of the merger it was valued at $2.4 billion.
 
Macquarie SBI acquired the stake from Quippo's share of the venture.
 
This is the first of a number of investments in India for Macquarie SBI, the company has announced.
 
Dylan Bushell-Embling

 

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