After its exit from the mobile services business, Tata Teleservices is looking to offer its 26 percent stake in a local joint venture to controlling shareholder American Tower Corp, said a report.
According to the sources quoted in the report, the value of the stake is estimated to be around Rs 5,000 crore while the penalty for early termination could be up to Rs 7,000 crore.
As per the news report, Tata Tele has told ATC it will discontinue around 30,000 tower tenancies with ATC India and its unit Viom Networks. The 25,000 tenancies on the Viom network are locked in for six years, while 5,000 on the ATC India network are for three years.
In a statement in October ATC had said, “The average remaining non-cancellable contract term with Tata Teleservices was in excess of six years…American Tower expects to fully enforce the average non-cancellable remaining contract terms on the leases with Tata Teleservices as well as the other contractual provisions included in the Viom transaction.” – Deal Street