Quipo Telecom Infrastructure, a Srei Group-promoted company, is likely to clinch a partnership deal with the tower business of Tata Teleservices in the next two weeks.
The forthcoming deal has pushed the share price of GTL Infrastructure, an independent tower operator, as the peer group valuation is used in mergers and acquisitions, say analysts.
“TTSL was busy in their deal with NTT DoCoMo, hence there has been a delay in the infrastructure business deal,” said a company source at Quipo. “We are most likely to close the deal in the next two weeks.” he said.
Japanese telecom company NTT DoCoMo bought a 26 per cent stake in TTSL early this month for Rs 13,070 crore.
TTSL had last year announced its plan to divest a 49 per cent stake in its tower business. Leading private equity firms such as Carlyle, Blackstone and domestic tower business players, including Quipo and Excel Towers, had made a bid.
Quipo is now believed to be in the final stage to buy a 49 per cent stake in the company and forge an alliance with a larger infrastructure player with a vast number of telecom towers.
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“During such deals, peer group shares rise as it is used for valuation and it is reflecting in increase in the volume of shares traded for GTL Infrastructure and its price increase,” said an investment banker familiar with the deal.
A source at GTL infrastructure said that the company had been involved with some domestic companies for acquisition but nothing is likely to be finalised in the near future that could contribute to the sudden increase in the share trade.
Shares of GTL Infrastructure rose 9.24 per cent rise on the Bombay Stock Exchange on Friday when the benchmark index grew 0.7 per cent to 9092.72.
The number of shares traded for GTL Infrastructure on both Bombay Stock Exchange and National Stock Exchange saw over five fold increase from the previous trading to 21.564 million.