Sunday, September 5, 2010

Reliance Drops Tower Sale Talks with GTL for other Suitor

Reliance Communications confirmed that it has ended discussions with GTL Infrastructure Ltd. about a possible sale of its tower infrastructure and that talks with another potential acquirer are under way.

Reliance Communications is exploring a possible sale of Reliance Infratel, its 95% subsidiary, as a means to significantly reduce its debt and unlock value for RCOM shareholders.

Reliance Infratel is operational in all 22 circle across India and had approximately 50,000 multi-tenancy towers as on March 31, 2010. Its primary client is its parent (Reliance Communications) although it currently has a tenancy or 1.75x across its active sites. Reliance Infratel has recently signed etisalat, S Tel, Aircell, MTS and Tata Indicom as tenants at its towers.

See also