Macquarie SBI Fund buys 11% in Viom Networks for Rs 1,400 cr

Macquarie SBI Infrastructure Fund (MSIF) has picked up nearly 11 per cent stake in Viom Networks for Rs 1,400 crore.

Viom is a leading independent telecom infrastructure company with over 37,000 towers and more than 80,000 tenants. MSIF is a joint venture between Macquarie Capital and State Bank of India (SBI).

In 2009, Quippo Telecom Infrastructure Ltd (QTIL) tied up with Tata Teleservices (TTSL) and the merger of their passive infrastructure business resulted in the formation of a unified entity -- Viom Networks.

Tata Teleservices held 54 per cent stake in the company, while the rest 46 per cent will be held by QTIL's promoter group, the Kanorias of SREI Infrastructure Finance Ltd, IDFC, Oman Investment Fund, GIC-Singapore and MSIF.

"Viom Networks has sold its almost 11 per cent stake to a consortium led by Macquarie SBI Infrastructure Fund for Rs 1,400 crore. The company will utilise the funds to repay its previous loans," SREI Infrastructure Vice-Chairman Sunil Kanoria told reporters here today.

Viom plans to roll-out over 20,000 towers in next two years, which will more than double its tenancy ratio, he said.

The company is planning an IPO in the next 2-3 years to fuel its network expansion, Kanoria said.

The 2009 merger will bring about economies of scale by having a common operational fleet, warehouses, inventories and resources. It will also provide relief from dual taxation on services rendered by both companies individually, he said.

"Viom will be a perfect blend as it represents one of the most professionally-managed companies in the telecom infrastructure space. I believe the Viom Board members will further ensure highest standards of corporate governance and ethical business practices," Tata Teleservices Managing Director Anil Kumar Sardana said.