Page 88 - IACC Newsletter March-April 2014 Issue 03

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Abu Dhabi-based Etihad Airways has picked a 24% stake in Jet, India’s largest publicly listed airline. The `2,058-crore Jet-
Etihad investment deal is the biggest foreign direct investment in the aviation sector since the government changed rules
to allow foreign carriers pick up stakes in Indian airlines.
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Massachusetts Headquartered American Tower Corp, likely to bid for Tata
Teleservices-owned Viom Networks
The company is willing to value Viom at around Rs 10,000-12,000 crore, excluding debt, one of the people said. Viom’s debt is
estimated at Rs 7,200 crore, which is expected to fall to around Rs 6,500 crore by the end of 2014.
American Tower Corp is working towards a bid for Viom Networks, the telecommunications tower company majority-
owned by Tata Teleservices, three people familiar with the matter said, setting the stage for the Boston, US-based firm to
become one of the largest telecom infrastructure providers in India.
The company is willing to value Viom at around Rs 10,000-12,000 crore, excluding debt, one of the people said. Viom's
debt is estimated at Rs 7,200 crore, which is expected to fall to around Rs 6,500 crore by the end of 2014 as the company
plans to repay some loans through internal accruals.
American Tower may make a bid by March 7, said another person. It was earlier looking to place a bid by February 25, this
person said. "There is a chance it will be further delayed, simply because we are still figuring out how exactly to value
Viom." Nasdaq-listed American Tower is likely to value Viom based on its operating profit and not on the number of
towers it owns, as the US Company had done in its previous two deals in India.
Viom is 54 per cent-owned by Tata Teleservices, around 18 per cent by the SREI group and the rest by private-equity firms
Macquarie SBI Infrastructure, GIC Investments, IDFC Private Equity and Funderburk Mauritius (Oman Investment Fund).
The PE consortium was brought in by SREI. ET had earlier reported the intent of the Tata group and some of Viom's
private-equity shareholders to exit the company as soon as a reasonable offer surfaces. Citigroup and Credit Suisse have