Deal talks between American Tower Corporation (ATC) and India-based TowerVision have stalled due to valuation differences, according to the Economic Times citing four people familiar with the matter.
In late May, it was reported that the US towerco was…
Deal talks between American Tower Corporation (ATC) and India-based TowerVision have stalled due to valuation differences, according to the Economic Times citing four people familiar with the matter.
In late May, it was reported that the US towerco was close to buying TowerVision’s 8,000 sites for Rs32bn (US$536m).
However, the local newspaper now writes that ATC is looking to lower that price to between Rs24bn (US$402m) and Rs28bn (US$469m), arguing that the towers have fewer tenants than previously estimated.
This valuation is substantially lower than the US$700m US PE firm Quadrangle and Israeli investor Fore Group, owners of TowerVision, were looking to secure for the company in September 2011. At the time, ATC had already been rumoured to be among the potential buyers.
A steady drop in the share price of competing towerco Bharti Infratel over the last few months as well as an additional cash component asked by TowerVision have also contributed to putting the talks on ice, according to the Economic Times.
Citing one executive, the newspaper however noted that the deal has not been called off.
ATC and TowerVision were not immediately available for comment.
The Indian tower market has not seen a deal in almost three years mainly because of regulatory uncertainties and the aftermath of the 2G scam.
In 2010, Indian towerco GTL had been very close to a deal with local mobile operator Reliance Communications (RCom). However, the US$11bn tower merger later failed because of valuation differences.
