Anil Ambani-backed Reliance Communications and GTL Infrastructure have agreed on a Rs 50,000 crore deal to create the world’s largest independent telecom infrastructure company, which would not be controlled by any telecom operator.
Under the deal, the telecom towers of Reliance Infratel, in which Reliance Communications holds a 95 per cent stake, would be merged with GTL Infrastructure, which offers infrastructure services to wireless telecom operators.
The deal is expected to close within six months. The combined entity would have 80,000 towers and over 1.25 lakh tenancies.
The deal would help bring in significant cash into Reliance Communications and that would help it reduce the company’s debt burden. Reliance communications said that its 2 million shareholders would receive shares of GTL Infra, which is listed on the exchanges. The details of the cash inflow into Reliance Communications and the share-exchange ratios for Reliance Communications shareholders have not been decided yet.
India's largest optic fibre network of over 200,000 kms and related assets owned by Reliance Infratel will however remain under Reliance Communication's ownership.
Standard Chartered Bank acted as the banker to the deal.
Src: [Profit.NDTV]
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