QTIL (Quippo Telecom Infrastructure Ltd.) and WTTIL (Wireless TT Info Services Ltd and Tata Teleservices (Maharashtra) Ltd (TTML) announced a share purchase agreement for the sale by TTML of its 100 per cent stake in 21st Century Infra Tele Ltd. (TFCITL), the tower arm of TTML, to Quippo-WTTIL.

As part of this deal, TFCITL’s entire portfolio of 2,535 towers in Mumbai, Maharashtra and Goa will be acquired by QUIPPO-WTTIL at an enterprise value of Rs. 1,318 crore, the company said in a statement.

The TFCITL portfolio, with a high tenancy ratio of 2.15, will further strengthen QUIPPO-WTTIL’s current tenancy ratio which is in excess of 2. This transaction will take the overall portfolio of QUIPPO-WTTIL to over 38000 towers nationally, further consolidating its leadership position in the industry - both from a portfolio and tenancy perspective.

The acquisition of TFCITL will give QUIPPO-WTTIL a strong countrywide footprint by strengthening its presence in the new geographies. Mumbai being a metro is one of the most attractive circles, where site acquisition is difficult and therefore, inorganic strategy will help the company in gaining a ready presence in this market, the statement said.

This transaction will also bring immense benefit to QUIPPO-WTTIL with the 3G and WiMax auctions to be conducted shortly and hence, the additional requirements for towers in these strategically important geographies, especially Mumbai. The deal will also help QUIPPO-WTTIL leverage the combined network strength and capture new customers, thereby enhancing the tenancy further.

“With a modest beginning in 2005, and subsequent to our partnership with Tata Teleservices last year, today we are the world’s largest independent telecom infrastructure company. It has been an extremely exciting and gratifying journey within a short duration,” said Sunil Kanoria, director QUIPPO-WTTIL.

“The acquisition complements our tower portfolio in the strategically important markets, at the same time providing us a contiguous network nationally. The proposed transaction will result in a renewed robust organisation with enhanced product profile in new geographies, economies of scale with numerous cost benefits due to operational synergies and a stronger financial position, thereby resulting in greater shareholder value”.

As part of this deal, QUIPPO-WTTIL has also received a confirmed commitment of approx. 4000 towers roll-out over a period of five years from TFCITL in Mumbai, Maharashtra and Goa. The deal takes the partnership of Quippo with Tata Teleservices, which began last year, to the next level.