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Brookfield, IDFC PE bid for Vodafone’s tower unit; GIC eyes Provenance Land

03 August, 2017

Global alternative asset manager Brookfield, IDFC Alternatives Ltd and American Tower Corporation have separately bid for the 11,000 towers of Vodafone India valued at $600 million, says a report in The Economic Times citing people aware of the development. The bids were submitted recently and the company will enter into an exclusivity agreement with one of the bidders, the report adds.

Vodafone India and Aditya Birla Group company Idea Cellular, which agreed to merge earlier this year, are looking to sell their tower assets before the transaction to ensure the merged entity is asset-light. The winning bidder for Vodafone’s tower assets will get access to Idea Cellular’s 9,000 towers as well and the first right of refusal, the report says.

In another development in the telecom space, Bharti Airtel Ltd is considering selling close to 3% stake in its tower arm Bharti Infratel Ltd to institutional buyers, says a Bloomberg report. No final decisions have been made though, and there’s no certainty the deliberations will result in a transaction, the report adds.

In March, Bharti Airtel sold 10.3% stake in Bharti Infratel to private equity firms KKR and Canada Pension Plan Investment Board for Rs 6,193 crore ($951.6 million).

As of June 2017, Bharti Airtel, along with its wholly-owned subsidiary Nettle Infrastructure Investments Ltd, held 61.65% in Bharti Infratel.

Singapore’s sovereign wealth fund GIC Pte Ltd is in advanced talks to buy up to 50% in RK Jatia Group’s Provenance Land, a Mumbai-based developer, says a report in The Economic Times citing three people aware of the development.

The exact quantum of the stake sale is yet to be negotiated but the promoter family may sell anywhere between 26 and 49%, the report says, adding the deal is estimated to value the company at Rs 2,000 crore.

Provenance Land owns the Four Seasons Hotel in Worli and is currently building luxurious Four Seasons Private Residences in Mumbai, according to its LinkedIn page.

In February 2016, Provenance Land sold its 81% stake in Ascent Hotels, which owns Pune Hyatt Regency, to Goldman Sachs-backed hospitality firm SAMHI Hotels.

Adar Poonawalla, chief executive officer of Serum Institute of India Ltd, is in talks to buy Mumbai-based low-income focused financing company Micro Housing Finance Corp. Ltd, says a report in Mint quoting two people aware of the development. The due diligence of Micro Housing is underway and the deal may be signed at a size of Rs 300 crore, the report adds.

“We plan to build a loan book of Rs 8,000-10,000 crore through multiple buyouts and plan to pump in Rs 4,000-5,000 crore for the acquisitions,” Poonawalla told Mint.

“However, we are really concerned on the high valuations of the existing non-banking financial companies in India,” he added.

Micro Housing counts Michael and Susan Dell Foundation, Ronnie Screwvala’s Unilazer Ventures and Caspian Impact Investment Adviser as major investors.

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Brookfield, IDFC PE bid for Vodafone’s tower unit; GIC eyes Provenance Land

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