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Thursday, March 18, 2010

Mobile services provider Tata Teleservices (Maharashtra) Limited or TTML has approved sale of its telecom tower arm to Quippo-WTTIL. TTML will divest

Mobile services provider Tata Teleservices (Maharashtra) Limited or TTML has approved sale of its telecom tower arm to Quippo-WTTIL. TTML will divest 100% stake in the tower subsidiary to Quippo-WTTIL. The deal valued at Rs 1,318 crore, values the towers at Rs 52 lakh per tower.

The transaction includes the tower portfolio in Mumbai, Maharashtra, and Goa. Quippo-WTTIL is likely to have a contiguous national network post acquisition.

TTML is likely to get in excess of Rs 900 crore in net cash inflows post sale. Quippo-WTTIL will get 2,535 towers in Mumbai, Maharashtra, and Goa.TTML's subsidiary has a tenancy ratio of 2.15. It has committed to a roll-out of 4,000 towers over the next five years.

Quippo-WTTIL's tower portfolio is likely to go over 38,000.

Commenting on the deal, Arun Kapur, CEO, Tata Quippo said TTML towers will give the company acess to two lucrative circles. ”We expect jump in infrastructure demand post 3G and WiMax.”

Kapur said the deal will be funded via a combination of internal accruals and equity.

On the business front, Kapur said work is in progress onm 40,000 towers. “The asset base currently is at Rs 10,000 crore.

The company, he said, is also focusing on in building solutions.

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