Macquarie SBI Infra Fund buys 11 per cent in Viom Network for Rs1,400 crore

India-focussed Macquarie SBI Infrastructure Fund (MSIF) said yesterday that it has bought around 11-per cent stake in leading telecom infrastructure company Viom Networks Limited for approximately Rs1,400 crore.

Viom Networks has been formed by the de-merger of passive infrastructure of Quippo Telecom Infrastructure Ltd (Quippo) and Wireless TT Info Services Ltd (WTTIL) of Tata Tele Services Ltd. (See: Tata Tale sells tower business to Quippo-WTTIL for Rs1,318 crore)  <companies/companies_t/Tata_Teleservices/20100318_quippo_wttil.html>

Following the court approvals for the de-mergers, the joint venture Quippo-WTTIL yesterday completed the merger of the passive arms resulting in the formation of the new entity.

MSIF was launched in April 2009 and managed by Macquarie SBI Infrastructure Management Pte Ltd, a joint venture between Australia's Macquarie Group, State Bank of India (SBI) and International Finance Corporation (IFC).

The fund targets growing investment opportunities in the Indian infrastructure sector which, according to planning commission's estimates is around $500 billion for the five-year period 2008-2012.

Following the transaction, Tata Tele Services holds a 54-per cent stake in Viom Networks and the balance 46 per cent is owned by Quippo's promoter group, which consists of SREI Infrastructure Finance Ltd of the Kanoria family, IDFC, Oman Invest Fund and Singapore's GIC and MSIF.