Essar Group may soon sell tower business for $425 mn

HONG KONG: 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 secondbiggest 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 Mumbaibased Essar Group, didn’t respond to an email seeking comment.

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, India’s largest independent operator of mobile-phone towers, last month agreed to buy 17,500 transmission sites from Aircel for Rs 84 billion ($1.8 billion ) to help it double its network in India.
Barclays is advising Essar Telecom on the sale.

The Essar Group operates mobile-phone services and runs energy, steel and real estate businesses. The privately held group may sell stakes in its oil and shipping units as part of a global expansion plan, chief executive officer Prashant Ruia said in October.