GTL, RCom end telco tower deal

Sep 07, 2010 |
  • Email this page
  • Printer-friendly version
Tags:

Mumbai, Sept. 6: The proposed deal between GTL and Reliance Communications (RCom) for sale of the latter’s telecom tower business has been called off. GTL had agreed to purchase RCom’s tower arm — Reliance Infratel — in a deal that valued the target firm at Rs 50,000 crore.

Post the transaction, GTL would have become India’s largest independent tower firm with over 80,000 towers. In parallel announcements to the stock exchang-es, both the firms have inf-ormed the stock exchange that the non-binding term sheet for the deal expired on August 31 and they have decided not to renew it.

RCom has also said that it is engaged in discussions with other financial and strategic investors for a similar deal. “There was an expectation that RCom may benefit because of reduced debt, but that is also stuck for now,” says an analyst tracking the firm.

RCom is looking at ways to bring down its debt, which added up to Rs 28,481 crore at the end of the June quarter. In June this year, the RCom board had also approved induction of a investor who would pick up to a 26 per cent stake in the firm.

Post new comment

The content of this field is kept private and will not be shown publicly.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

Business

“It went too soon, too soon That age when cats fiddled And cows jumped over the moon...” From Tension Nahin Leneka by Bachchoo On the strength of a few series of situation comedy for TV and the fact that I have written material for stand-up comics and parodists, I am invited to participate in a seminar on comedy at a German university. The particular department of the university has post-graduate students who learn through the medium of English and in the case of this seminar have chosen the option of what universities call “post-colonial” studies.

The year is still new, and we are full of good intentions. This week we learnt that the government’s sporadic efforts — mostly weak and often mindless — to change anti-dowry laws for better implementation may include laying down rules on how much you can spend on weddings. The Planning Commission’s Working Group on Women’s Agency and Empowerment has recommended an income-linked ceiling on marriage expenditure, which would include gifts as well as celebratory feasts. In short, if you try to spend beyond your means on your daughter or son’s wedding, you’d better be ready for the dowry inspector.

Horoscope