GTL Infrastructure said its deal with Reliance Communications to merge their telecoms tower businesses has been called off, a blow to the second largest telecoms firm’s efforts to cut debt.
A deal would have lowered Reliance Comm’s debt by $3.9 billion, a source has told Reuters.
In June, GTL and Reliance Comm agreed to combine their tower operations that would own more than 80,000 towers and have an enterprise value of over $11 billion.
The non-binding term sheet signed by the companies expired on Aug. 31, GTL said on Monday.
“Subsequently despite efforts, both parties have neither extended the term sheet nor entered into any definitive transaction agreements,” the company said in a statement.
It did not give specific details about why the deal was called off.
Debt-laden Reliance Communications, controlled by billionaire Anil Ambani, is looking to sell a 26 per cent stake in itself.
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