GTL Infrastructure Chairman Manoj Tirodkar own 30-35 % shares in tower deal

Posted by on Jun 28, 2010 | Leave a Comment

Reliance Communications, India’s No. 2 mobile carrier, agreed to sell its telecoms tower business to GTL Infrastructure Ltd to create what it said would be the world’s largest telecom infrastructure firm not controlled by a telecom operator, reports CNBC-TV18. The combined operations would have an enterprise value of over $11 billion and would own more than 80,000 towers, with more than 125,000 tenancies from over 10 operators, Reliance Communications said on Sunday.

Reliance Communications jumped 4.62% to Rs 201.40 at 9:15 IST after the company agreed to merge its telecom towers business with that of GTL Infrastructure.

Shares of GTL Infrastructure jumped 8.60% to Rs 49.25. The announcement was made before trading hours today, 28 June 2010.

Meanwhile, the BSE Sensex was up 73.16 points, or 0.42%, to 17,647.69.

Reliance Communications (RCom) said it will retain its optic fibre network and related assets. RCom will receive cash as part of the deal and its shareholders will get shares in GTL Infrastructure. RCom also said that cash infusion will lead to a substantial reduction of its consolidated gross debt and improve leverage ratio, contributing to enhanced financial flexibility.

Under the terms of Sunday’s deal, GTL Infrastructure Chairman Manoj Tirodkar would own 30 to 35 percent of the combined tower business and Ambani’s Reliance ADA Group would own 26 percent, with shareholders in the two firms holding the remainder, sources with direct knowledge of the matter said.

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