GTL Infrastructure may be on the verge of announcing the acquisition of Aircel’s tower business later this week, after the firm released a teaser on the BSE.
The firm said in a statement to the bourse: “The matter pertaining to consideration of…
GTL Infrastructure may be on the verge of announcing the acquisition of Aircel’s tower business later this week, after the firm released a teaser on the BSE.
The firm said in a statement to the bourse: “The matter pertaining to consideration of opportunities for strategic acquisition(s)/investments and matters relating thereto… will now be considered in a meeting of the Board of Directors of the Company scheduled to be held on January 14, 2010.”
It is widely believed that the firm is referring to the Aircel towers acquisition.
The deal will cost a total of US$1.8bn and GTL, which will undertake the transaction via a SPV, will look to take on around US$1bn in debt, which it will probably then refinance.
The cash segment will consist of US$365m from GTL Infrastructure’s internal cash, US$215m from group firm GTL Ltd and another US$215m from holding company Global Holding Corp.
Once the deal is complete, GTL Infrastructure’s debt-to-equity ratio will stand at 1:8.
Two other home grown firms and two American companies – Bharti Infratel, Tata-Quippo, ATC and Crown Castle – were also in the hunt.
Aircel, 74% owned by Maxis Communications, is being advised by Standard Chartered, Nomura and Rothschild.
Tata-Quippo is being advised by Lazard.
GTL currently holds around 11,000 towers. Aircel possesses 17,500.