India's Tata Teleservices Close to Tower Sale

Published on: 1st December 2008

India's Quipo Telecom Infrastructure is reported to be close to securing a deal to buy a 49% stake in Tata Teleservices (TTSL) tower operations - and also forge an alliance with a larger infrastructure player.

TTSL's tower arm, Wireless TT Infoservices (WTTIL) aims to have around 10,000 towers by March 2010. The plans to sell a 49% stake in the firm were actually announced a year ago, and were expected to be concluded this summer.

"TTSL was busy in their deal with NTT DoCoMo, hence there has been a delay in the infrastructure business deal," a company source at Quipo told the Business Standard newspaper. "We are most likely to close the deal in the next two weeks." he said.

Japan's DoCoMo recently confirmed long running rumours and brought a 26% stake in TTSL for US$2.7 billion.

The share price of rival tower operator, GTL Infrastructure has surged on the news of a deal with TTSL

"During such deals, peer group shares rise as it is used for valuation and it is reflecting in increase in the volume of shares traded for GTL Infrastructure and its price increase," an investment banker familiar with the deal told the newspaper.

On the web: Business Standard

 

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