American Tower Corp set to pick up 51% in tower company Viom for $1 billion.

American Tower Corp (ATC) is close to sealing a deal worth $900 million-$1 billion to acquire a 51% stake in Viom Networks, which will be followed by a merger of the Indian unit of ATC with Viom, bringing the curtains down on year-long talks.

Viom is majority-owned by the Tatas (54%), who hold the stake through unlisted telecom arm Tata Teleservices.

Srei, promoted by the Kolkata-based Kanoria family, owns around 18.5% while the rest is held by a clutch of PE funds including IDFC Private Equity, SBI Macquarie, Oman Investment Fund, GIC of Singapore and AMP Capital.

According to multiple sources involved in the transaction, the first leg of the deal will see Srei sell its stake and exit Viom, while the Tatas will significantly pare their shareholding to 26-30%.

'While Macquarie, SBI and IDFC Private Equity will continue for certain, the decision of the other equity firms is not yet clear,' said one of the people cited, referring to the first stage of the transaction.

ET