New Delhi, Sep 6 (Calcutta Tube) 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.