Srei Infrastructure?s telecom subsidiary, Srei Infocom, is close to buying around 60% stake in Luxembourg-based Millicom?s tower assets in Tanzania for around Rs 400 crore. Millicom is a Nasdaq-listed telecom services provider (known for brand Tigo across Europe and the US) in countries spanning across Africa and the US. Millicom?s Tanzanian arm has around 1,100 towers under its fold, in which it is offloading a majority stake.
It is learnt that after having had talks with many prospective suitors across the globe, Millicom has finally closed in on Srei as the latter is willing to offer 40% stake in the entity post deal (a condition laid by Millicom for the buy-out), a source with direct knowledge of the development said.
Srei is likley to fund the deal from the money its tower subsidiary Quippo will get by divesting a 11% stake in VIOM to institutional investor Mcquarie for Rs 1,420 crore. It is also learnt that WL Ross would also pick up a minority stake in the company, thus enabling Srei raise enough money for the African deal.
When contacted Srei Infrastructure MD Hemant Kanoria said, ?We are exploring various business opportunities in Africa.?
?Bharti?s acquistion of Zain Telecom?s African operations seems to be prompting other players to look at the African market. Srei,which already is a large player in the Indian telecom tower market through Quippo, is now looking to enter the African continent,? said an industry expert.
Meanwhile, VIOM is an independent telecom infrastructure company, with over 37,000 towers and hosts around 80,000 tenants on its towers, taking its tenancy ratio to 2.2. It has an enterprise value of Rs 20,000 crore. In 2009, Quippo Telecom Infrastructure tied up with Tata Teleservices and the merger of their passive infrastructure business resulted in the formation of Quippo-WTTIL.
TTSL and Tata Sons hold a 54% in the company, while the other 46% is owned by QTIL?s promoter group, the Kanorias of Srei Infrastructure Fin, IDFC, Oman Investment Fund, GIC-Singapore and MSIF.