Viom Networks has shortlisted Malaysia-based telecom operator Celcom Axiata, private equity firms Carlyle and Providence, and American Tower Company as the potential buyers for the stake sale. The company is planning to sell stake to raise funds for network expansion. Viom Networks has appointed Citigroup and Credit Suisse to carry out the deal, and it is likely to be finalised by August 2014.
At present, Viom Networks has a portfolio of 40,000 towers. It has an equity valuation is estimated to be Rs 130 billion and an enterprise valuation of about Rs 200 billion.
Viom?s current stakeholders, Tata TeleServices Limited (TTSL) and Srei Group will reportedly dilute their stakes in the company depending on the final valuation. TTSL and Srei Group currently hold a 54 per cent and 18.5 per cent stake in Viom Networks respectively. TTSL is expected to reduce its ownership to about 30 per cent. Other stake holders of the company include IDFC Private Equity, SBI Macquarie, Oman Investment Fund and GIC of Singapore, which together own 27.5 per cent stake.
