Mumbai: Tata Teleservices (Maharashtra) Ltd, or TTML, on Wedenesday, has agreed to sell its 100% stake in its tower arm 21st Century Infra Tele Ltd., or TFCITL, to the world’s largest independent telecom infrastructure company Quippo Telecom Infrastructure Ltd. & Wireless TT Info Services Ltd, or QUIPPO-WTTIL, at an enterprise value of Rs1,318 crore.
As part of this deal, TFCITL’s entire portfolio of 2,535 towers in Mumbai, Maharashtra and Goa will be acquired by QUIPPO-WTTIL and this transaction will provide strategic advantage to QUIPPO-WTTIL as it will complement the tower portfolio of the company in Mumbai, Maharashtra and Goa, where QUIPPO-WTTIL does not have a significant presence currently.
“The acquisition complements our tower portfolio in the strategically important markets, at the same time providing us a contiguous network nationally. The proposed transaction will result in a renewed robust organisation with enhanced product profile in new geographies, economies of scale with numerous cost benefits due to operational synergies and a stronger financial position, thereby resulting in greater shareholder value,” Sunil Kanoria, director, QUIPPO-WTTIL said in a media statement.
The TFCITL portfolio, with a high tenancy ratio of 2.15, will further strengthen QUIPPO-WTTIL’s current tenancy ratio which is in excess of 2. This transaction will take the overall portfolio of QUIPPO-WTTIL to over 38,000 towers in India.