GTL Infra denies lender takeover interest
Indebted Indian towerco GTL Infrastructure has dismissed a report suggesting that lenders are considering converting some of its debt into equity as a first step towards a takeover.
The Economic Times reported that the 16 or so lenders – including…
Indebted Indian towerco GTL Infrastructure has dismissed a report suggesting that lenders are considering converting some of its debt into equity as a first step towards a takeover.
The Economic Times reported that the 16 or so lenders – including the State Bank of India, IDBI Bank, United Bank of India and Deena Bank – would turn around the company and then sell it, in order to recoup at least some of the debt they have classified as non-performing.
Responding to a request for clarification on the report by the Bombay Stock Exchange, GTL said in a statement that it “denies having knowledge of lenders weighing options to take control …”
GTL noted that it is “taking all necessary steps” to service its CDR debt obligations, which totalled Rs34.14bn (US$535.37m) as of 31 March 2015.
The report cited one source as saying that GTL’s current investors could see their stakes become either “marginal” or non-existent after the lenders take control.
Chairman and founder Manoj Tirodkar holds some 27%, while the remainder is owned by local and foreign institutions and other investors.
GTL, which is listed on the Bombay Stock Exchange, has a market cap of Rs5.81bn (US$91.11m).
