Indivision, Oak India and Goldman to acquire Indian broadband company

The three firms will pay INR2.4bn for 70 percent of Tikona Digital Networks.

India-focused private equity firm Indivision India Partners, Goldman Sachs Investment Partners, Oak India Investments and Green Lotus are investing INR2.37 billion ($47 million; €35 million) in Tikona Digital Networks, an Indian wireless broadband service provider.

The firms will get a stake of 69.9 percent in the Mumbai-based unlisted company, a source close to the matter said. The transaction is expected to close two to three weeks following regulatory approvals.

Established in mid-2008, Tikona has a class A ISP licence granted by the Indian Ministry of Communications to provide wireless broadband services for home and business use across the country.

Goldman Sachs Investment Partners is a multi-disciplinary hedge fund. Green Lotus is an affiliate of Goldman Sachs, according to Indian blog VCCircle.

Indivision India Partners is a private equity firm currently investing out of a $425 million fund focused on providing growth capital to Indian companies. The fund has made 16 investments so far. The firm is an affiliate of Future Group, an Indian retail group and consumer-centric business conglomerate.

Oak India Investments did not respond to a request for comment by press time. Indivision India Partners declined to comment. Goldman Sachs could not be reached.