RCom calls off tower deal with GTL Infra
September 6th, 2010 - 2:41 pm ICT by IANSNew Delhi, Sep 6 (IANS) Anil Ambani-promoted Reliance Communications (RCom) Monday said it is not going ahead with the merger of its telecom tower arm with GTL Infra and would scout for other prospective investors.
“RCom is engaged in discussions with other strategic and financial investors to pursue a similar transaction aimed at significant reduction in the company’s debt and unlocking value for RCom shareholders from the passive infrastructure and related assets in its 95 percent owned subsidiary Reliance Infratel,” the company said in a regulatory filing.
RCom did not give any reason for calling off the deal with GTL Infra, citing a non-disclosure agreement signed between the two.
In a separate filing to the Bombay Stock Exchange, GTL Infra also said the deal with RCom would not go through.
“A non-binding agreement in June expired Aug 31 and neither side is extending the deadline. Consequently, the process of merger as originally contemplated would not take place,” GTL said.
RCom in June had proposed to merge its tower business with GTL Infra in a Rs.50,000 crore ($11 billion) deal to create the world’s largest independent telecom infrastructure company.
The Rcom scrip was ruling 0.92 percent lower at Rs.161.90 in afternoon trade. It had spiked to Rs.167.80 in the opening session.
The GTL Infra scrip too was trading lower at Rs.44.15, down 2.32 percent, having touched an intra-day low of Rs.42.35.
- RCom merges tower business with GTL Infra - Jun 27, 2010
- RCom up 4.4 percent, gains after GTL deal - Jun 28, 2010
- R-COM revenues up, but profit down on forex adjustments - Aug 13, 2010
- RCom, Aircel to sign $300 mn infrastructure sharing deal - Aug 31, 2009
- Reliance stocks up after Ambani brothers call truce (Lead) - May 24, 2010
- Reliance Communications examining sale of controlling stake in arm - May 31, 2011
- Etisalat, RCom sign infrastructure sharing pact - Jul 22, 2009
- Reliance groups stocks up after brothers call truce - May 24, 2010
- Hope to sell telecom towers arm soon: Ambani - Sep 27, 2011
- Talk of tax treaty with Mauritius spooks Indian markets (Roundup) - Jun 20, 2011
- Oil and consumer durables push Sensex 1.14 percent up (Roundup) - Jun 28, 2010
- Reliance Communications to de-merge telecom infrastructure arm - Jun 14, 2010
- Reliance Communications net up 8.3 percent - Jul 31, 2009
- R-Com looks at investor, public issue for tower arm - Sep 28, 2010
- Anil Ambani talks of unlocking shareholder value (Roundup) - Sep 27, 2011
Tags: afternoon trade, ambani, assets, binding agreement, bombay stock exchange, financial investors, gtl, infrastructure company, merger, New Delhi, non disclosure agreement, prospective investors, rcom, reliance, rs 42, rs 50, shareholders, subsidiary, telecom infrastructure, telecom tower