Tata Teleservices and IDFC to Sell Their Stake in ATC

0
332
Advertisement

The aftermath of ATC stake sales by Tata Teleservices and IDFC will lead to American Tower Corporation owning 79 per cent in its India operations

Tata Teleservices Ltd (TTSL) has announced that it will be selling 50 per cent of its total stake in in American Tower Corporation’s (ATC) tower. IDFC has also revealed its plans of selling it’s entire stake in ATC. The stakes are valued at Rs 2,940 crore.

The companies, redeeming their put options, said that they will offload the stakes to ATC.

ATC to own 79 per cent in its India operations

Advertisement

The aftermath of ATC stake sales by Tata Teleservices and IDFC will lead to American Tower Corporation owning 79 per cent in its India operations. ATC curretly owns holds 63 per cent in ATC TIPL while the rest is owned by IDFC, Macquarie SBI Infrastructure Investments, SBI Macquarie Infrastructure Trust, Tata Sons and Tata Teleservices.

Commenting on the settlement, ATC said: “Subsequent to the end of the quarter, we reached a comprehensive agreement with the Tata Group that we believe preserves our ability to achieve our long-term return on investment objectives in India. We expect that this agreement, along with the acquisition of about 20,000 Vodafone and Idea towers earlier this year, will position American Tower to benefit from the anticipated recovery in the Indian mobile market.”

TTSL to pay $320 million to ATC

Tata Teleservices Ltd will also be paying a one time settlement of $320 million (₹2,368 crore) to ATC in lieu of closing down around 30,000 telecom towers. ATC is expecting to receive this settlement amount in its coffers by the fourth quarter of 2018.

It is to be noted here that TTSL and Bharti Airtel had merged their consumer mobile businesses in a cashless deal last year.

ATC further said, “About 80 per cent of TTSL’s tenant revenue will be churned out of the company’s tenant billings run rate, effective November 1.”

Advertisement

SHARE YOUR THOUGHTS & COMMENTS

Please enter your comment!
Please enter your name here

Are you human? *