Viom Networks no longer plans to acquire Reliance Infratel, the tower arm of Reliance Communications (RCOM). It is believed that the companies differ on valuation of the entity.
The company, which had recently expressed an interest to acquire RCOM’s tower assets, has decided not to initiate formal discussions as it feels that Reliance Infratel’s reported valuation of $5 billion is unrealistic.
The Tata Group have 53 per cent stake in Viom Networks, while the Kanorias hold about 27 per cent and foreign institutional investors (FIIs) own the remaining 20 per cent.
Further, it is believed that Viom’s shareholders feel that Infratel’s enterprise valuation will be impacted by the issues the sector is currently facing.
