Quippo Telecom Infrastructure Limited (QTIL) sponsored by Kanoria’s of SREI Infrastructure Finance Limited and Wireless-TT Info-Services Limited (WTTIL) the tower arm of Tata Teleservices Limited (TTSL), announced the completion of the transaction of merging the two companies along the same terms as their announcement in January 2009.
Mr. Sunil Kanoria, Vice Chairman & Managing Director, Quippo Group quoted “There is no change in the deal structure. We will make upfront cash payment of Rs. 2,367 crores and transfer all our towers to WTTIL. In exchange, we will get 49% stake and management control of the merged entity.”
Mr. Kanoria also added, “Quippo has raised part of the Rs 2,367 crores to fund the deal from IDFC Private Equity and Oman Investment Fund, with the remaining amount coming from mezzanine capital and debt. TTSL will have five representatives on the board as they have a 51% stake, while we will have four. In addition, we will also get to nominate an independent chairman to the 10-member board.”