Malaysia based Axiata Group is considering to buy a stake in Tikona Digital. The move is in line with Axiata?s strategy to increase its presence in the Indian telecom sector.
Tikona currently offers wireless broadband services in 20 circles, using unlicensed spectrum. The company paid Rs 10.58 billion for broadband wireless access (BWA) spectrum in Himachal Pradesh, Rajasthan, Uttar Pradesh (East and West) and Gujarat in 2010 and is expected to start offering 4G services by April 2012. It had recently acquired HCL Infinet to strengthen its Internet infrastructure.
The key equity holders in Tikona include Goldman Sachs, Oak Investment Partners and Everstone Capital Advisors which hold a combined stake of 70 per cent stake in the company. Former Reliance Communication employees ?Prakash Bajpai and Rajesh Tiwari have less than two per cent stake. Further, Tikona had introduced L&T Infrastructure and Anand Rathi Securities as investors after receiving BWA licence in 2010.
According to industry sources, Axiata has been conducting discussions with Tikona’s owners in this regard. However, nothing has been finalisesd. Further, it is yet undecided whether the existing promoters will exit or Tikona they will sell new shares to Axiata.
Axiata is the leading telecom operator in Malaysia and currently holds 5.91 per cent stake in Idea Cellular.
