Srei Infrastructure Finance announced on Thursday that the stake sale in Viom Networks to American Tower Corporation was complete.
Srei Infra, along with other shareholders of Viom, had entered into a definitive agreement with ATC on October 21, 2015, to sell majority stake in Viom, which owns and operates 42,000 wireless communications towers across India.The transaction was approved earlier this month by the Cabinet Committee on Economic Affairs. The transaction is one of the largest foreign direct investments in the Indian telecom sector in recent times.
The overall transaction amounting to Rs 7,600 crore, resulted in a total foreign direct investment inflow of Rs 5,856 crore into the telecom infrastructure of the country, of which Srei received a total of Rs 2,931 crore.
Sunil Kanoria, vice-chairman of Srei and vice-chairman & managing director of Viom, said: “Post the receipt of all regulatory approvals, the transaction has been completed and we have now received the entire consideration for our stake sale. This will lead to substantial cash inflow into Srei, which will lower its debt and reduce interest cost, thereby augmenting capital and improving future profitability.”