By - { 25/02/10 }

Essar Telecom Infra bought over by American Towers’ Transcend Infra – More consolidation in Telecom Towers business

Consolidation has been happening in the Indian Telecom Towers space for quite sometime now. We knew

1. Quippo Telecom acquired Spice Telecom’s tower business last year and Tata Teleservices Tower Business Unit later got merged to the same.

2. Then, American Tower Corp (ATC) acquired Xcel Telecom towers for 750 crores around May, 2009 and

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3. Also, ATC took over Transcend Infrastructure for 100 crores in Oct, 2009.

4. Later, a joint venture – Indus Towers blossomed between Vodafone (42%), Bharti Airtel (42%) andIDEA (16%).

5. And very recently, GTL Infrastructure bought over Aircel Telecom Tower Business for a whopping ~8500 crores. Each tower was valued at around 45 lakhs.

And now, Transcend Infrastructure Ltd (TIL) the subsidy of American Towers Corporation (ATC) is taking over Essar Telecom Infrastructure in an all cash deal and making a tower valuation of around 45 lakhs which is same as the previous GTL-Aircel deal. To get this deal done, Transcend has entered into share purchase agreement with three Indian companies of the Essar Group to acquire substantially the entire issued share capital of Essar Telecom.


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Seems, ATC is constantly expanding its tower portfolio. With the latest deal, ATC has got 3 indian tower companies in its kitty and has installation base of around 7000 sites. It is heard the company has been trying to increase its network coverage and launch new technologies like 3G and WIMAX.

Having already seen several thousands crores of deals, Indian Telecom Towers space is definitely looking one the lucrative businesses around. And, more consolidation to happen .. who is next ?
Categories: telecom
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