Indian tower company Viom Networks is looking to sell a stake in itself to private equity firms, director Sunil Kanoria told the Business Standard.
The company, which is a joint venture between Tata Group and Srei Infrastructure, has over 40,000 towers…
Indian tower company Viom Networks is looking to sell a stake in itself to private equity firms, director Sunil Kanoria told the Business Standard.
The company, which is a joint venture between Tata Group and Srei Infrastructure, has over 40,000 towers in India and reportedly posted a first-time profit during 2012-2013.
Rumours about a sale first emerged in late 2011when it was reported that the towerco was in talks with TPG Partners and Sumitomo Corporation of Japan to reorganise its operations.
Viom is the fourth-largest tower company in India with a 12% market share.
A stake sale would see Tata’s stake, which currently stands at 54%, be reduced. An IPO is also still on the cards, according to a banker cited by the newspaper.
Two years ago, Viom had decided to cancel plans to list on the Bombay Stock Exchange after executives reportedly argued that the time may not be right for an IPO given the state of the equity market and the controversy surrounding the Indian telecom sector amid the 2G scam.
Viom declined to comment on the report.
Meanwhile, the Business Standard recently reported that Tata has hired Lazard for advice on a potential merger between its mobile subsidiary Tata Docomo and local carrier Uninor.
Norway’s Telenor, which controls Uninor, declined to comment on the speculation but added it will evaluate opportunities that become available and make business sense. Tata was not available for comment before the press deadline.
