A few days after it was reported that Indian towerco Viom Networks is considering a foreign listing to raise financing, M&A rumours are emerging.
US giant American Tower is working on a bid for the Tata Teleservices majority-owned infrastructure…
A few days after it was reported that Indian towerco Viom Networks is considering a foreign listing to raise financing, M&A rumours are emerging.
US giant American Tower is working on a bid for the Tata Teleservices majority-owned infrastructure company, according to the Economic Times citing people familiar with the matter.
The US towerco reportedly values Viom at up to Rs120bn (US$1.93bn), excluding debt which is estimated at around Rs72bn (US$1.16bn).
An offer could come as early as March, a source was quoted as saying. American Tower was not immediately available for comment.
If agreed, a deal would create one of India’s largest telecoms tower companies with around 50,000 towers nationwide. American Tower owns or operates 10,000 sites in the country, while Viom controls a further 40,000.
Earlier this week, local newspaper the Business Standard reported that the Indian towerco was looking to raise around Rs15bn (US$242m) from a listing on either the London, New York or Singapore stock exchange. Credit Suisse and Citigroup are reportedly advising on the process.
In an emailed statement, Viom confirmed it has mandated financial advisers “to explore options for raising growth capital” but declined to comment on details in the report.
Local mobile operator Tata Teleservices has a 54% stake in the towerco, 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%.
Over the past few months, Viom has reportedly considered various capital raising opportunities and has been in contact with private equity firms and towercos about potential investments.
Viom intends to use the new capital to expand its network of towers in India and strengthen its global operations, vice chairman Sunil Kanoria was quoted as saying in early January.
The success of the recent spectrum auction in India is expected to refuel investors’ appetite for infrastructure, as operators strengthen their position in the country’s mobile industry.
