Sujana Towers acquires 51 percent stake in African firm

By IANS,

Mumbai : Sujana Towers Limited, part of the Rs.30 billion Sujana Group of Companies, has acquired a majority stake in the African telecom infrastructure company Telesuprecon Ltd.


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Mauritius-based Telesuprecon has been executing telecom infrastructure projects for the last 15 years in African countries like Tanzania, Kenya, Malawi, South Africa and Nigeria with plans to extend into other east and central African countries.

Announcing the stake acquisition in a press meet here Wednesday, Sujana Group director S. Hanumantha Rao said: “Our main aim is to penetrate markets in east and central Africa. Telesuprecon has already made forays into these regions focusing on telecom infrastructure projects.”

He said the acquisition was done “by subscription to new equity shares issued by Telesuprecon. Thus now Telesuprecon has become a subsidiary of STL.”

Moreover, Rao said no money was paid to the existing promoters and they will continue to be associated with the company in professional capacity and support its operations.

“The equity subscription by us was made at par and as per the agreement with the other promoters, we will support the company by providing the required working capital including guarantees,” he said.

At present Telesuprecon is in advanced stages of negotiations for securing telecom infrastructure contracts amounting approximately $40 million in east and central African countries. The orders have to be executed over the next 12-21 months.

Telesuprecon has set up its operational headquarters in Nairobi which will act as a hub for all its spokes operating in other countries including Kenya, said V.S.R. Murthy, group director of Sujana Group.

Talking about Sujana Towers which was formed through the de-merger of tower division of Sujana Metal Products, its managing director G. Srinivasa Raju said last year it completed capacity expansion of the galvanized tower facility at Hyderabad.

“Now Sujana Towers is involved in setting up a new facility at Gummidipundi in Chennai at a capital expenditure of Rs.1.50 billion. It will cater to south India and export markets while the Hyderabad unit will focus on western and central India,” Raju said.

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