Govt clears ATC's 51 pc stake buy in Viom for Rs 5,857 cr

The Cabinet Committee on Economic Affairs (CCEA) today cleared the proposal of American Tower Corporation (ATC) to acquire 51 per cent stake in Viom Networks for Rs 5,856.51 crore as the firm pledged an investment of USD 2 billion in India.
"Singapore-based mobile tower company ATC Asia Pacific has decided to make an investment of Rs 5,856.51 crore to buy 51 per cent stake in Indian company Viom Networks. ATC Asia Pacific is a wholly-owned subsidiary of American Tower Corp. This is another important decision taken today by CCEA," Union minister Ravi Shankar Prasad today said.
The company is keen to participate in a big way in initiatives like Digital India as it considers India as a big market in terms of communications.

ATC President and CEO James D Taiclet Jr met Prasad yesterday and conveyed the intention to invest more in India.
"Chief of ATC James Taiclet... Has assured me that they will invest USD 2 billion more because India in terms of communications is a very big emerging market," Prasad said.
ATC in October 2015 announced to 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 and SREI Infrastructure Finance.

Under the agreement, ATC may also acquire or be required to acquire all or a portion of the remaining 49 per cent ownership stake in Viom.

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 said without elaborating.
Tata Teleservices Ltd owns 54 per cent of Viom while the Kolkata-based SREI Group of Kanoria family holds 18.5 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 in the company.
ATC will buy all of SREI's 18.50 per cent stake and will 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 reduce to 26 per cent after ATC merges its Indian business with Viom," said Sunil Kanoria, Vice-Chairman of SREI Infrastructure Finance.

IDFC's private equity division will bring down its holding to 3.2 per cent while PE fund 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.