The owners of Indian tower joint venture Viom Networks are reconsidering options to sell a controlling stake in the company, the Economic Times reported citing several sources familiar with the situation.
Local conglomerates Tata Group and Srei…
The owners of Indian tower joint venture Viom Networks are reconsidering options to sell a controlling stake in the company, the Economic Times reported citing several sources familiar with the situation.
Local conglomerates Tata Group and Srei Infrastructure have reportedly mandated Credit Suisse and Citigroup to advise them in formal discussions with private equity firms and international tower companies.
Viom director Sunil Kanoria had already been quoted saying earlier this year that his company was considering a stake sale to a financial sponsor. The objective is to help cut the towerco’s debt which stood at Rs65-70bn (US$1.06-1.14bn) as of 31 March 2013.
With over 40,000 sites in India and a 12% market share, Viom is the fourth-largest tower company and claims to be the country’s biggest independent telecoms infrastructure group.
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.
An IPO could also be on the cards. Two years ago, Viom decided to cancel plans to list on the Bombay Stock Exchange. Executives argued then that the time may not be right given the state of the equity market and the controversy surrounding the Indian telecom sector amid the 2G scam.
Tata has a 54% stake in Viom while Srei has 18%. Several firms are also invested in the towerco including IDFC Private Equity, Macquarie SBI Infrastructure Fund, GIC Singapore, and Oman Investment Fund.
Viom declined to comment on market speculation. But Hemant Kanoria, a Viom director and chairman of Srei, told the newspaper he was not aware for any strategic plans and that the board has not taken “any final call”.
