CCI approves ATC's Rs 7,635-cr stake buy in Viom Networks

US-based American Tower Corp has got CCI approval to acquire a majority stake in telecom tower firm Viom Networks for Rs 7,635 crore in an all-cash deal.
In the largest FDI in the telecom sector this fiscal, American Tower Corp (ATC) will buy 51 per cent stake in Viom, which owns and operates about 42,200 towers and has another 1,000 mobile phone masts under construction, from Tata Teleservices Ltd and SREI Infrastructure Finance.
In a tweet, the Competition Commission of India (CCI) said it has approved "acquisition of 51 percent equity of Viom Networks Limited by ATC Asia Pacific Pte Ltd".

"Under the agreement, American Tower may acquire or be required to acquire all or a portion of the remaining 49 per cent ownership stake in Viom," a statement announcing the deal had said in October.
Also, as a pre-condition for the deal, ATC's existing 14,000 telecom mobile masts will be merged with Viom.
This will result "in certain ownership adjustments", the statement had said.

Tata Teleservices Ltd owns 54 per cent of Viom, with Kolkata-based SREI Group of Kanoria family holding about 18 per cent with management control.
Singapore state investor GIC, Macquarie SBI Infrastructure Fund, Oman Investment Fund and India's IDFC Private Equity are other investors.

ATC will buy all of SREI's 18.50 per cent stake and also acquire stake from other shareholders.
"Tata Teleservices stake will come down to about 34 per cent from the current 54 per cent now and further, it would get reduced to 26 per cent after ATC merges its Indian business with Viom," SREI Infrastructure Finance Vice-Chairman Sunil Kanoria had said.
IDFC's private equity division will bring down its holding to 3.2 per cent while SBI-Macquarie will retain its 11 per cent stake.
Viom was formed in 2009 as a result of merger of mobile towers of Tata Teleservices and Quippo Telecom, a unit under the SREI Group.