Reliance Communications has agreed a deal worth US$11bn to merge its towers subsidiary Reliance Infratel with GTL Infrastructure.
While the companies have not revealed the financial terms of the deal, GTL, advised by Standard Chartered, is likely to pay…
Reliance Communications has agreed a deal worth US$11bn to merge its towers subsidiary Reliance Infratel with GTL Infrastructure.
While the companies have not revealed the financial terms of the deal, GTL, advised by Standard Chartered, is likely to pay around US$3bn to Reliance, which will be used to pay down debt.
The deal will see Reliance Infratel’s towers assets demerged into GTL Infra but Reliance Communications will retain ownership of its 200,000 km fibre optic network and related assets.
The combined entity, comprising more than 80,000 towers, will be confident of generating high levels of business by leasing out its infrastructure to India’s plethora of telecom operators.
The deal is expected to close within the next six months.
Reliance also confirmed that talks to sell a 26% stake in the overall business are ongoing.