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 19:10:19 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:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Tata Sons likely to pay Tata Teleservices' AGR dues of Rs 13,823 cr, company to approach TCS for funds: Report
Business

Tata Sons likely to pay Tata Teleservices' AGR dues of Rs 13,823 cr, company to approach TCS for funds: Report

Two weeks ago, Tata Sons was trying to raise around Rs 14,000 crore from banks and through internal accruals to pay the AGR dues of Tata Teleservices before the 23 January deadline.

Tata-DoCoMo truce may leave Japanese firm with $790 million to invest in India: Reuters
Business

Tata-DoCoMo truce may leave Japanese firm with $790 million to invest in India: Reuters

When DoCoMo decided to get out in 2014, Tata Sons was unable to find a buyer for the Japanese firm's stake and offered to buy the stake itself, for half DoCoMo's investment of $2.2 billion.

Mistry opens up on DoCoMo deal, but which specific Tata allegation is he responding to?
Business

Mistry opens up on DoCoMo deal, but which specific Tata allegation is he responding to?

Though reams of newsprint have been used in writing about the Mistry ouster saga and the possible reasons which lead to his sacking, there is no specific allegation from the Tata Group as yet about the NTT DoCoMo case