New Delhi, April 7: In a major FDI go-ahead, American Tower Corporation Wednesday got government nod for 51 per cent stake buy in domestic telecom tower firm Viom Networks for Rs 5,857 crore and pledged to invest USD 2 billion more in India.
The stake purchase in Viom, by ATC’s Singapore-based subsidiary, was cleared by the Cabinet Committee on Economic Affairs (CCEA).
ATC President and CEO James D Taiclet, who is on a visit to India, said the company is investing USD 1.17 billion to acquire 51 per cent controlling stake in Viom and will grow this by a similar amount when it increases its stake to 100 per cent.
“Singapore-based mobile tower company ATC Asia Pacific has decided to make an investment of Rs 5,856.51 crore to buy 51 per cent stake in Indian company Viom Networks. ATC Asia Pacific is a wholly-owned subsidiary of American Tower Corp,” Union minister Ravi Shankar Prasad told reporters after the CCEA meeting.
The company is keen to participate in a big way in initiatives like Digital India as it considers India as a big market in terms of communications.
Taiclet also met Prasad Tuesday and conveyed the intention to invest more in India.
“We are investing USD 1.17 billion to acquire 51 per cent controlling stake in Viom and will grow this by a similar amount when we increase our stake to 100 per cent,” he said in a statement.
The approval on its proposed acquisition of 51 per cent stake in Viom is the highlight of his India trip, he added.
“Chief of ATC James Taiclet… has assured me that they will invest USD 2 billion more because India in terms of communications is a very big emerging market,” Prasad said.
Taiclet said the company is committed to strengthening its India operations and has already invested over USD 800 million since its launch in India in 2007.
“India is a priority country for us and post Viom acquisition, our portfolio of 57,000 towers will be our largest presence in any country globally,” he said.
The acquisition of Viom makes ATC the leading independent telecom infrastructure provider and will allow it to better serve customers as it rolls out its 3G/4G networks, said Amit Sharma, President Asia for ATC.
