Viom Networks makes buyout offer to GTL Infrastructure

Viom Networks, Telecom tower firm has made Rs 7,500 crore ($1.69 billion) offer to buyout GTL Infrastructure. SBI Capital Markets is advising Global Group, the parent company of GTL Infrastructure, on the possible sell out or stake dilution.

Both the parties have been engaged in talks as there is a valuation mismatch. GTL promoters are learnt to be eyeing valuations of over Rs 10,500 crore excluding its debt. 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.

GTL Infrastructure, a part of the Global group, is registered with the Department of Telecommunications (DoT) as an Infrastructure Provider in Category I (IP-I). The company builds, owns, operates and maintains passive network infrastructure on a shared basis in order to cater to the rapidly growing infrastructure needs of cellular telecom operators.

Viom is a joint venture between telecom carrier Tata Teleservices and tower firm Quippo.