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Quippo Telecom Infrastructure Limited (QTIL) has announced the completion of the merger with Wireless-TT Info-Services Limited (WTTIL), the tower infrastructure arm of Tata Teleservices Limited (TTSL). Quippo, which is promoted by SREI Infrastructure Finance Limited, completed the process of amalgamation with WTTIL on August 18, 2009. Both the companies announced the merger in January this year.

The boards of both companies met in Mumbai on Tuesday to complete the transaction. QTIL will be holder of around 49% stake in WTTIL. To acquire around 30% stake in WTTIL, QTIL has made cash payment of Rs. 2,367 crores and for the remaining 19% stake, it would transfer approximately 5,000 towers to the new company formed post the acquisition.

On the completion of the acquisition, Mr. Sunil Kanoria, Vice Chairman & Managing Director, Quippo Group notified, “Quippo has raised part of the Rs 2,367 crores to fund the deal from IDFC Private Equity and Oman Investment Fund, with the remaining amount coming from mezzanine capital and debt. TTSL will have five representatives on the board as they have a 51% stake, while we will have four. In addition, we will also get to nominate an independent chairman to the 10-member board.”

Tower infrastructure business is gaining a high note in the Indian region with more numbers of players joining the fray. All major telcos in the country have hived off their tower businesses into separate companies. Also, the infrastructure leasing brings in a great amount of revenue when economic recession and inflation demands more expenditure from the operators. Currently, Indus Towers (in which Vodafone-Essar, Bharti Airtel and Idea Cellular are equity partners), Reliance Infratel and Bharti Infratel, currently command over 90% share in the 200,000 tower market.

This is Quippo’s second major deal. In January 2008, the group had bought out the entire physical telecom infrastructure (which included about 850 towers) of Spice Communications for about Rs 500 crore. Spice was later acquired by Idea Cellular; the latter has a lease back deal with Quippo to continue using these towers for the next few years.