India's Tata Closer to Sale of Tower Stake

India's Tata Teleservices is again reported to be in talks with Quippo Telecom Infrastructure (QTIL) to merge their respective tower operations. Last month, we reported QTIL had confirmed to journalists that it is in talks with Tata Teleservices to take a large stake in the company's tower business. The Economic Times newspaper now says that QTIL has emerged as the top bidder for a 49% stake in TTSLĂ's tower business.

"The two sides are evaluating the possibilities of a merger. Tatas will own equity in the merged entity," sources told Economic Times. "Bankers will be appointed in the next few days to work out the modalities," sources added. Lehman Brothers and Citigroup, which were advising Tatas on stake sale in WTTL, are likely to be given the mandate for merger.

QTIL currently has around 5,000 towers and WTTL has about double that with some 10,000 towers. The merged company is expected to have a valuation of around US$4.5 billion.

A TTSL spokesperson said, "We are in discussion with several players for offloading a minority stake in our tower business and cannot comment any further on speculative queries."

Just last month, QTIL Managing Director Arun Kapur had said that QTIL will invest US$3 billion in fiscal year 2008-2009 to boost its telecoms infrastructure business. The expenditure would be split along internal expansion and acquisitions.

On the web: Economic Times

Posted to the site on 30th May 2008