Asset management funds make bids on Indian telecoms towers
Three companies have submitted bids in the race to buy 20,000 Indian telecoms towers. Boston-based American Tower, Canada's Brookfield Asset Management and Indian infrastructure fund IDFC Project Equity Infra have all submitted bids for the towers, currently owned by Vodafone India and Idea Cellular. After their merger plan received the antitrust regulator's approval, the two mobile carriers have started integrating their networks.

(This story originally appeared in on Aug 12, 2017)

KOLKATA/MUMBAI: The race to acquire the 20,000 towers owned by Vodafone India and Idea Cellular is intensifying. Boston-based American Tower Corp. (ATC), Canadian alternative asset management fund Brookfield and local infrastructure fund IDFC Project Equity Infra have each submitted bids in the $1.1-1.2 billion range for the towers, with a decision likely in a few weeks, three people aware of the matter told ET.The bids come as Vodafone India and Idea, respectively the country’s second and third-largest mobile carriers, are reckoned to have started integrating networks following their merger plan getting the antitrust regulator’s approval, they said. "The bids for Vodafone India’s 10,926 standalone towers have been submitted to Morgan Stanley, while those for Idea’s 8,886-odd standalone ones have been submitted to Bank of America-Merrill Lynch," said one of the people cited above.Vodafone’s own towers are reckoned to be valued at $650-700 million, while Idea’s are pegged at $500-550 million, the second person cited said.There were 15,418 tenants on Idea’s 8,886 standalone towers at a tenancy ratio of 1.7 while there were 15,846 tenants on Vodafone India’s 10,926 towers at a tenancy ratio of 1.5, according to an investor presentation by Idea on March 20, following the announcement of its proposed merger with Vodafone India. ET has seen this presentation.Morgan Stanley and Bank of America-Merrill Lynch are managing the captive tower sales for Vodafone India and Idea, respectively. The people cited above said a final decision on the sale of the combined tower portfolio is likely in a few weeks and is expected to be a Vodafone-Idea joint decision."Any decision to sell the towers separately or collectively will hinge on whichever format commands a higher enterprise valuation as both Vodafone India and Idea will try to secure the best monetisation deal for their standalone towers in the run-up to integration of their networks," said a third person.Vodafone and Idea "could demand a premium" if they decide to sell their combined tower portfolio on the ground that the buyer will "enjoy the advantage of scale with a wider network of towers," the person said.