Quippo merger transaction complete
Quippo Telecom Infrastructure Ltd (QTIL) sponsored by SREI Infrastructure Finance Ltd and Wireless-TT Info-Services Ltd (WTTIL) — the tower arm of Tata Teleservices Ltd (TTSL), has announced the completion of the transaction of merging the two companies along the same terms as their announcement in January 2009. “There is no change in the deal structure. We will make upfront cash payment of Rs2,367 crores and transfer all our towers to WTTIL. In exchange, we will get 49% stake and management control of the merged entity,” said Sunil Kanoria, Vice Chairman & Managing Director, Quippo Group.
Kanoria also added: “Quippo has raised part of the Rs 2,367 crores to fund the deal from IDFC Private Equity and Oman Investment Fund, with the remaining amount coming from mezzanine capital and debt. TTSL will have five representatives on the board as they have a 51% stake, while we will have four. In addition, we will also get to nominate an independent chairman to the 10-member board.”
The boards of both companies — QTIL and WTTIL — met in Mumbai on Tuesday to complete the transaction. QTIL has made a payment for a 30% stake in WTTIL, while for the remaining 195, it would transfer 5,000 towers to the new company formed post the acquisition.