Will Quippo transfer its passive telecom tower portfolio to wttil
Quippo Telecom to Buy 50% of WTTIL
In August, QTIL announced the acquisition of 46% stake in WTTIL in a deal valued at Rs2,367 crore. It said it would merge the telecom towers promoted by the Kanoria family into the WTTIL company. Although TTSL still holds the majority stake in WTTIL, it has transferred management control to the Kanoria family. This move demonstrates TTSL’s intent to focus on its core mobile telephony business instead of focusing on its telecom towers business.
Quippo will transfer its passive telecom tower portfolio to wttil
Tata Teleservices and Quippo Telecom have signed a deal for the latter to acquire the remaining 49 per cent of each other’s stake in WTTIL. The transaction will see the management of Tata’s telecom towers transfer to Quippo’s hands. The deal has been rumoured for several months. The two companies will also share control over the passive telecom tower portfolio of WTTIL.
Quippo transfer
The deal will see Quippo transfer its passive telecom tower portfolio to WTTIL for approximately Rs 2400 crore in cash. The combined company will own and manage over 18,000 telecom towers, making it the largest tower company in India. The deal will also create a combined entity with an enterprise value of Rs 13,000 crore (roughly $2.65 billion). However, the deal has some stipulations.
Mobile Phone
The deal involves two mobile phone services firms, Tata Teleservices Limited and Quippo Telecom Infrastructure Limited. The former will retain a 49 percent stake while the latter will own 51 percent. The merged entity will lease its passive telecom tower portfolio to various phone firms. The combined company will be the second-largest in the country in terms of telecom towers. The transaction is expected to be completed by year-end.
Merger of Quippo
The merger of Quippo and WTTIL will significantly increase the companies’ scale and reach, and is a strategic deal that will increase value for all stakeholders. Quippo is professionally managed, while WTTIL is a model of corporate governance. The merger will ensure the best utilisation of assets, and a healthy upside potential in tenancy, all of which will lower capital expenditure.
IBM to provide managed services to Quippo-WTTIL offices across the country
Quippo-WTTIL, the world’s largest independent telecom infrastructure provider, has signed an IMS deal with IBM to overhaul its IT infrastructure. The managed services IBM will provide to Quippo-WTTIL offices in northern India will include server, storage, networking, security and business process synchronization. Quippo-WTTIL has more than 38,000 telecom towers across the country and plans to build and operate nearly 25,000 more by the end of 2018.
Extensive IT
IBM has extensive IT outsourcing capabilities. It addresses customers worldwide through an extensive network of channel partners and distributors. Its international presence has made it difficult to provide a transparent maintenance service to multinational companies. It also faced challenges associated with dealing with different national languages, currencies, and contact people. Furthermore, it could not guarantee service quality and reliability. Fortunately, IBM has the technology expertise to solve these challenges.
TTML to be acquired by QUIPPO-WTTIL
The Quippo-WTTIL combination is reportedly in the process of acquiring a telecom infrastructure company owned by Tata Teleservices (Maharashtra). The deal is valued at around Rs 1,318 crore and would add four new members to the WTTIL board. Quippo, a subsidiary of Srei Group, would acquire a 30% stake in WTTIL. The proposed acquisition would expand the combined company’s tower network to over 38,000 towers across the country.
TFCITL
The acquisition of TFCITL will also further strengthen the QUIPPO-WTTIL’s presence in emerging geographies, including Mumbai. Site acquisition in the metro circle is difficult, so gaining a foothold through an inorganic strategy would be advantageous for both companies. Moreover, 3G auctions are scheduled to take place shortly, increasing the demand for towers in the city. In addition, the combined networks will be able to capture new customers.
TTML’s tower
The sale of TTML’s tower portfolio is likely to raise over Rs 1,300 crore for QUIPPO-WTTIL. As a result, the company will be able to use the money to pay its debt and buy 3G licences in the future. TTML has more than 12 million subscribers in Maharashtra and Goa, and it is expected that the deal will result in the infusion of over Rs 900 crore in cash.
Technical Support
IBM will provide Quippo-WTTIL with a comprehensive technical support system. The combined IT environment will enable the company to maximize operational efficiency and reduce costs. IBM will deploy server and storage support, networking and security services, manage relationships with existing service providers, and provide overall management and integration functions. The combined company will also offer a wide range of managed services. Further, IBM will provide helpdesk services for the company’s employees.
Ending Words
According to the Economic Times, the deal between TTML and QUIPPO-WTTIL involves the sale of a 2-5 percent stake in a joint venture. The Macquarie-SBI Fund will buy a ten percent stake in the joint venture. In addition, the company could raise around $150 million by selling a 5 per cent stake. In addition, Kanoria added that the stake sale would only be to a limited extent.
