GTL and its unit GTL Infrastructure, the Indian telecom towers company, have appointed SBI Capital Markets to help review its operations, including its financial performance and obligations.
In separate but similar filings with the Bombay Stock Exchange…
GTL and its unit GTL Infrastructure, the Indian telecom towers company, have appointed SBI Capital Markets to help review its operations, including its financial performance and obligations.
In separate but similar filings with the Bombay Stock Exchange (BSE) on 27 June, the companies explained that these announcements are aimed at dispelling “any adverse ‘rumours’ being spread against the company, which have caused tremendous harm to the minority shareholders.”
Last week saw GTL’s and GTL Infrastructure’s shares fall sharply after it was suggested that a stake in GTL and GTL Infra may be sold.
But in a notice with the BSE on 20 June, GTL wrote: “In GTL, the promoters hold 52.71% of the equity capital of the company. The promoters have pledged only 12.85% of the equity capital of the company, which was already intimated to the stock exchanges, as part of our regular disclosures.
“The company would like to confirm that neither promoters nor entities relating to promoters have sold any shares, including the shares that have been pledged.”
In a separate filing, also published on 20 June, GTL Infra said: “In GTL Infra, the promoters and promoter group hold 58.34% of the equity capital of the company. The promoters and promoter group have not pledged any shares. This has been already intimated to the stock exchanges, as part of our regular disclosures.”
At the time, the company also said it had postponed plans to raise up to US$300m from institutional investors to fund its expansion plans and repay existing debts, as reported back in March.
“The company has never launched any road show for the above said issue. We believe that the present market conditions, policy clarity on telecom sector and global market sentiments are not favourable for the issue at this stage. We would like to inform you that the company is in highly capital intensive business and it will raise funds at appropriate times. We will keep the stock exchanges updated of any developments on this matter,” it wrote in the filing.
SBI Capital is expected to prepare a report on GTL and GTL Infra within 30 days.
Early February, it was reported that GTL Infrastructure and cellco Viom Networks had submitted bids to acquire 7000 towers owned by JV Vodafone Essar. Sources close to the deal confirmed to TelecomFinance at the time that GTL was interested in the towers and that it had hired Standard Chartered Bank to advise it on a potential deal.
However, valuation issues between British telco Vodafone and Indian conglomerate Essar Group with regards to their JV delayed the tower sale process.
In recent months, GTL has been working to consolidate the Indian tower market, buying Aircel’s towers and attempting a US$11bn merger with Reliance Infratel’s towers business. It owns 32,500 towers.
