RCom up 4.4 percent, gains after GTL deal
June 28th, 2010 - 3:39 pm ICT by IANSMumbai, June 28 (IANS) Reliance Communications (RCom) was trading with robust gains in afternoon trade Monday, after shooting up in the morning on the week-end news of its $11-billion telcom tower deal with GTL Infra.
The RCom scrip was up 4.36 percent at Rs.200.90, around 1.30 p.m., compared to its previous close at Rs.192.50. It had shot up soon after opening bell to Rs.204.75.
The Anil Ambani-led company said Sunday it would 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 company said the deal, which is expected to be closed over the next six months, would result in “cash infusion to RCOM, leading to substantial reduction of its consolidated gross debt and improved leverage ratios, contributing to enhanced financial flexibility.”
GTL Infra’s scrip too was ruling higher at Rs.47.60, up 4.96 percent from its previous close at Rs.45.35. It had touched an intra-day high of Rs.54.40 in morning trade.
Though the companies did not divulge the particulars of the deal, market analysts pegged RCom’s gains around Rs.15,000 crore.
“Further details of the quantum of cash infusion to RCom, and the share swap ratios for RCom and RINFRATEL minority shareholders will be finalised in due course with the help of independent valuers and advisors,” RCom said in a statement.
RCom said it will retain the 200,000 km fibre optic network of the Reliance Infratel, and the shareholders of both companies will receive shares of the new entity, which will be listed.
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