BW Communities

Viom Networks Makes Buy Offer To GTL Infra

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[Telecom tower firm Viom Networks has made a 75 billion rupees ($1.69 billion) offer to buy out its competitor GTL Infrastructure, The Economic Times reported on Friday. SBI Capital Markets is advising Global Group, the parent company of GTL Infrastructure, on the possible sell out or stake dilution, the newspaper reported, quoting two executives directly aware of the development. Viom is a joint venture between telecoms carrier Tata Teleservices and tower firm Quippo. Talks are continuing, as there is a valuation mismatch - GTL promoters are learnt to be eyeing valuations of over 105 billion rupees (excluding its debt), the newspaper reported, but did not name the executives. When contacted by Reuters, a GTL Infrastructure spokesman said that the company was in talks with many aspirants, but declined to divulge further details. Reuters could not immediately reach Viom officials. An earlier rounds of talks held during first week of July had not make any headway as Viom was not keen on the merger option being proposed by bankers, the newspaper report said. Shares of GTL Infrastructure rose as much as 12 per cent in early trade after a report said telecom tower firm Viom Networks has made a 75 billion rupees ($1.69 billion) offer to buy it out. Shares opened up 5.45 per cent and at 9.22 a.m., they were up 10.91 per cent at 15.25 rupees per share in a weak Mumbai market.   (Reuters)