In a bid to strengthening its Telecom services (Voice and Data segment) Tata Teleservices (Maharashtra) divest 100% stake in its tower subsidiary to Quippo-WTTIL valued at Rs 1,318 crore.
TTML holds 2,535 towers in Mumbai, Maharashtra and Goa telecom circle under its wholly owned subsidiary 21st Century Infra Tele Ltd which are now sold to the Quippo-WTTIL.
Mukund Govind Rajan, Managing Director, Tata Teleservices (Maharashtra) Ltd. (TTML), said "We are delighted with the recognition of the value that TTML has created in TFCITL. Going forward, this transaction allows us to focus on our core business priorities of strengthening our market leadership in the voice and data segments. The cash inflow from this transaction in excess of Rs 900 Crores will support our ambitious investment and growth plans".
Announcing the deal, Mr. Sunil Kanoria, Director, QUIPPO-WTTIL said "With a modest beginning in 2005, and subsequent to our partnership with Tata Teleservices last year, today we are the world’s largest independent telecom infrastructure company. It has been an extremely exciting and gratifying journey within a short duration. 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".
According to Mr. Arun Kapur, Chief Executive Officer, QUIPPO-WTTIL, "We have always kept customer centricity and innovation at the core of our business. This has helped us successfully strengthen our position as the world’s largest independent telecom infrastructure company. Our various innovative solutions and the steps taken to enhance operational efficiencies along with our partner operators have resulted in reducing the total cost of ownership. Post this acquisition, we will have an overall portfolio of over 38000 towers by the end of March 2010 and the highest tenancy ratio of over two, in the industry. With this transaction, we are well on course to achieving our vision of being the "Most Valuable Independent Shared Telecom Infrastructure Company Globally".
