Essar to sell tower unit for $425 mn

Essar group is close to selling its mobile-phone tower business for $425 million, a person with knowledge of the plan said.

The group plans to announce the sale of Essar Telecom Infrastructure, India's second-biggest independent operator of mobile-phone towers, by as early as February 15, the person said, asking not to be identified before a public disclosure.

Manisha Awasthi, a spokeswoman at Mumbai-based Essar Group, didn't respond to an e-mail seeking comment on Friday. The sale may give Essar funds to bid for third-generation wireless licences that the government plans to auction.

Indian tower and mobile operators are seeking to merge or sell assets as growth slows and competition intensifies in the world's second-biggest wireless market by users. GTL Infrastructure last month agreed to buy 17,500 transmission sites from Aircel $1.8 billion. Barclays is advising Essar Telecom on the sale.



The Essar Group operates mobile-phone services and runs energy, steel and real estate businesses.