To hold 12% stake in Quippo post merger: SREI

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To hold 12% stake in Quippo post merger: SREI

Sunil Kanoria, Director of SREI said the company will hold 12% stake in Quippo post merger.” TTML towers will add presence in Maharashtra.”

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS TTML sells tower arm to Quippo-WTTIL for over Rs 1,300cr ALSO READ See latest News about TataTeleservice See previous management interviews See what other Experts & Brokerages are saying about TataTeleservice TataTeleservice BSE | NSE 31/05/12 Are Mutual Funds betting on TataTeleservice? Other Stocks in this news SREI Infrastructure Finance |

Q: First if you could tell us what would be the economic interest of SREI post the merger in this company Quippo-WTTIL, which has picked up the TTML tower share?

A: SREI's stake after the SREI Quippo merger, once it happens, will be closer to 12%.

Q: I am talking about this Quippo-WTTIL subsidiary specifically. Will it be 49% post merger?

A: That will be 46% which the group of Quippo telecom along with SREI and other investors like GIC Singapore, IDFC Private Equity and Oman investment Fund would be holding and within that SREI economic interest in the Tata Quippo tower business would be close to 12%.

Q: You have a merger scheduled between SREI Infra and Quippo by the April 1. Does this change the merger ratio around because of the acquisition you have made for the Quippo-WTTIL company?

A: No, does not make any change because the merger is between Quippo Infrastructure, which is the holding company of Quippo telecom. So there is no change in that.

Q: Just walk us through the details of the price you have arrived at for the acquisition in TTML's tower facility - how you valued it what you see it as the kind of tendency it holds right now and how you are funding this big buy?

A: I think the way we have assessed is that because the towers are mostly in Mumbai and Maharashtra, which we were not there present, therefore we believe that the value which we will get from there and Mumbai and Maharashtra the tele density is very strong. We see the tenancy among this is highest, 2.15 was already the tenancy on these towers.

Therefore we have given an enterprise value of Rs 1,318 crore for 2,535 towers, which makes it about Rs 52 lakh a tower. The way we would be funding it is basically by our internal accruals and debt which the Tata Quippo joint venture has.