Telecom tower company Viom Networks has made a 7,500-crore offer to buy out its competitor GTL Infrastructure, two executives directly aware of the development.

Talks are continuing, as there is a valuation mismatch -GTL promoters are learnt to be eyeing valuations of over 10,500 crore (excluding its debt), the executives quoted above said. 

They also added that earlier rounds of talks held during first week of July had not make any headway as Viom was not keen on the merger option being proposed by bankers. Viom had made this offer to GTL last week. 

SBI Capital Markets is advising Global Group, the parent company of GTL and GTL Infrastructure, on the possible sellout or stake dilution. 

Viom's CEO Arun Kapoor declined to comment when asked specifically if the company had made a 7,500-crore offer to GTL. Viom is 53% controlled by the Tatas, while Kolkata-based Kanorias, founders of Srei, have 27% with foreign institutional investors holding the remaining 20%. 

The founder and promoter of Global Group, Manoj Tirodkar, refused to comment, but the company in an e-mail reply to an ET query said: "There are many aspirants who want to acquire our assets or partner with us. 

Viom has not entered into any formal discussion with us and hence the question of 7,500 crore or the 10,500 crore being value does not arise. The fact that players like Viom continues to approach and show their interest in GTL Infra is a tribute to the business we have built." 

GTL's debt is estimated to be around 14,000 crore. The executives quoted above also clarified that Viom's offer to GTL was subject to two conditions. First, theGlobal Group must reduce its debt in its tower arms to about 7,500 crore post the restructuring. Viom is of the view that GTL cannot sustain a higher debt based on its current cash flows. 

Next, Viom has also said that its offer is valid only for a limited period as it shares the view that its competitor's valuations will erode further if the company fails to meet its service level agreements with respect to its clients, they added.