Tata Teleservices in talks with ATC to sell entire stake in mobile tower business for Rs 2,500 cr

Tata Teleservices sold half of its 26 percent stake and IDFC its entire stake in mobile tower company ATC TIPL to majority shareholder American Tower Corporation (ATC) for Rs 2,940 crore.

Press Trust of India April 24, 2019 19:01:13 IST
Tata Teleservices in talks with ATC to sell entire stake in mobile tower business for Rs 2,500 cr
  • In October 2015, ATC bought a 51% stake in Viom from Tata Teleservices and SREI Infrastructure Finance for Rs 7,635 crore

  • ATC TIPL is the second-largest private telecom tower firm in India

  • ATC's stake in ATC TIPL is likely to reach around 90% if the Tata Teleservices exits the business

New Delhi: Tata Teleservices is in talks with American Tower Corporation to sell its entire stake in the mobile tower business for about Rs 2,500 crore at a price of Rs 212 per share.

"Tata Teleservices sold half of its stake to American Tower Corporation (ATC) in October 2018. It is option to sell the rest of the stake it holds along with Tata Sons in this fiscal. The process for sale has started for valuation of around Rs 2,500 crore at Rs 212 per share," a source, who did not wish to be identified, told PTI.

No immediate reply was received from ATC and Tata Teleservices on an e-mail query sent to them in this regard.

Tata Teleservices in talks with ATC to sell entire stake in mobile tower business for Rs 2500 cr

Representational image. Reuters.

Tata Teleservices sold half of its 26 percent stake and IDFC its entire stake in mobile tower company ATC TIPL to majority shareholder American Tower Corporation (ATC) for Rs 2,940 crore.

In October 2015, ATC bought a 51 percent stake in Viom from Tata Teleservices Ltd and SREI Infrastructure Finance for Rs 7,635 crore. After acquiring majority stake, ATC named the firm as ATC Telecom Infrastructure Pvt Ltd.

ATC TIPL is the second-largest private telecom tower firm in India with a portfolio of around 78,000 mobile towers.

Tata Teleservices' stake in Viom Networks came down to 26 percent after ATC acquired a majority stake in the company and merged its existing India business and further reduced to 13 percent after stake sale in October 2018.

ATC's stake in ATC TIPL is likely to reach around 90 percent if the Tata Teleservices exits the business after selling entire stake.

Updated Date:

also read

Vinod Kannan to take the lead as new CEO of Vistara; Leslie Thng to join senior rank in Singapore Airlines
Business

Vinod Kannan to take the lead as new CEO of Vistara; Leslie Thng to join senior rank in Singapore Airlines

Vistara is a 51:49 joint venture airline between Tata Sons and Singapore Airlines. Vinod Kannan is set to take over as Vistara's CEO from 1 January, 2022

Received financial bids for Air India disinvestment, says Centre; Tatas among suitors
Business

Received financial bids for Air India disinvestment, says Centre; Tatas among suitors

The stake sale process, which begun on January 2020, faced delays due to the COVID-19 pandemic