VCCircle

Mobile services provider Spice Communications has decided to sell its 875 mobile towers to a tower operating company. Some reports suggest that the towers would be sold to Quipo Telecom, a tower company promoted by Srei Group, however, The Economic Times quotes Spice's B K Modi as saying that the deal is yet to be concluded. Media reports suggest that the deal with Quipo could be estimated at about Rs 500 crore ($126.5 million). If the information is correct, that values each tower at about Rs 57 lakh ($144K).
Spice has also informed Bombay Stock Exchange that the board has decided to avail borrowing facilities of up to $400 million from Hong Kong & Shanghai Banking Corp and another $410 million from China Development Bank for expanding its networks in Karnataka and Punjab, the two circles where it currently offers mobile services.
Recently, the other mobile companies like Bharti Airtel, Idea, and Vodafone, transferred their passive towers to a separate tower arm called Indus Towers. It would hold 70,000 towers. The Tatas and Reliance Communications have also hived of their tower assets as separate businesses. Reliance sold a 5 per cent stake in its 14,000-strong tower biz RTIL to a group pf private equity investors for $337.5 million, which valued the company at $6.75 billion.
Spice's tower business is getting a lower valuation probably they are present only in two circles - Karnataka and Punjab.