American Tower to spend $880m on India’s Viom Networks
07 April 2016 | Jason McGee-Abe
American Tower Corp (ATC) has invested $880 million to acquire a 51% controlling stake in Indian infrastructure provider Viom Networks.
The announcement of ATC’s investment into India’s Viom Networks, was closely followed by a commitment by the company to invest a further $2 billion in the Indian market.
ATC’s CEO, James Taiclet Jr, made the commitment to invest more in India during the company’s meeting with minister Ravi Shankar Prasad. He did not, at the time, specify what the amount would be spent on.
India's cabinet committee on economic affairs cleared the deal on Wednesday sanctioning ATC’s proposal to buy a 51% stake in Indian mobile mast operator Viom Networks.
Ravi Shankar Prasad, Indian Telecoms Minister, said: “The CEO of American Tower James D. Taiclet Jr. met me on Tuesday. He assured me that they will invest $2 billion more in India as it an important communications market,” according to the Hindu.
ATC will acquire Viom Networks, which has over 42,000 towers across India and has 1,000 towers presently under construction, through its wholly-owned Singapore subsidy, ATC Asia-Pacific. It has been rumoured that ATC may acquire the remaining 49% stake in Viom, according to the agreement.
The absorption of Viom assets will take a year or two. He also said that the acquisition comes at a time when major mobile operators in India are rolling out 3G and 4G services across the country.