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Last Updated : Apr 22, 2016 08:57 AM IST | Source: PTI

Srei completes 18% stake sale in Viom for Rs 2,931 cr

The infrastructure financing firm, along with other shareholders, had entered into a definitive agreement with ATC on October 21, 2015 for selling its stake in Viom.

 
 
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Srei Infrastructure Finance said it has completed the stake sale in Viom Networks to American Tower Corporation (ATC) for Rs 2,931 crore.


Srei sold its entire 18 percent stake in telecom tower company Viom, in which the Tatas and few others had shareholding, a company official said.


The infrastructure financing firm, along with other shareholders, had entered into a definitive agreement with ATC on October 21, 2015 for selling its stake in Viom.

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Viom owns and operates over 42,000 wireless communication towers across India.


"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," Srei Vice-Chairman and MD of Viom, Sunil Kanoria said.


"ATC Asia Pacific Pvt Ltd, Singapore had acquired 51 percent equity shareholding in Viom...and it is one of the largest FDI in the Indian telecom sector in the last few years. The overall transaction amounts to over Rs 7,600 crore, resulting in a total FDI inflow of Rs 5,856 crore into the telecom infrastructure of the country," Srei said.


Srei forayed into telecom tower business in 2005 along with Quippo Telecom Infrastructure Private Limited (QTIPL) with 50 towers.


Between 2006 and 2008, QTIPL grew to around 5,000 towers through organic growth and acquisition of Spice telecom towers.

In 2009, by way of merging its tower business with that of wholly-owned subsidiary of Tata Teleservices Limited, Viom was created with around 18,000 towers.



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First Published on Apr 22, 2016 08:36 am
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