American Tower has reportedly submitted the highest bid – Rs190bn (US$3.13bn) – for a majority stake in Indian towerco Viom Networks.
The acquisitive US towerco’s offer includes taking on Rs65bn (US$1.01bn) in debt, the Economic Times reported…
American Tower has reportedly submitted the highest bid – Rs190bn (US$3.13bn) – for a majority stake in Indian towerco Viom Networks.
The acquisitive US towerco’s offer includes taking on Rs65bn (US$1.01bn) in debt, the Economic Times reported citing a person familiar with the matter.
However, the offer falls short of the Rs200bn (US$3.23bn) excluding debt sought by Viom shareholders, the report noted. The valuation difference reflects a disagreement over the number of operators leasing the towers, an industry expert was quoted as saying.
US private equity firms Carlyle and Providence are still in the bidding race, while Malaysia’s Axiata has dropped out, the Economic Times wrote.
The companies were not immediately available for comment.
American Tower already has 10,000 sites in India, while Providence has an indirect stake in local JV Indus Towers.
Viom, which owns around 40,000 towers in the country, reportedly has an equity value of Rs130bn (US$2.14bn) and an enterprise value of about Rs200bn.
Rumours of a sale or foreign listing of the towerco have circulated for several months. According to today’s report, the current bidding round is the third and final one.
Meanwhile, a separate local report today suggested Viom is also considering raising funds through a real estate investment trust (REIT) as this would offer investors an assured rate of return. According to this report, the company intends to take a final decision on which fundraising route to opt for in September.
Early this year, Viom confirmed in an emailed statement it had mandated financial advisers, thought to be Credit Suisse and Citigroup, “to explore options for raising growth capital”.
Local mobile operator Tata Teleservices has a 54% stake in Viom, while conglomerate Srei Group holds an 18.5% interest. Financial investors IDFC Private Equity, SBI Macquarie, Oman Investment Fund and the Government of Singapore Investment Corporation (GIC) together own the remaining 27.5%.
Viom vice chairman Sunil Kanoria was quoted in January as saying the towerco planned to use the new capital to expand its network of towers in India and strengthen its global operations.
