GTL Infrastructure said its deal with Reliance Communications to merge their telecoms tower businesses has been called off after both sides failed to agree on a deal by the August 31 deadline.
Despite efforts, both parties have neither extended the term sheet nor entered into any definitive transaction agreements as envisaged therein.
A statement from Reliance Communications said, “Following the expiry of the non-binding term sheet with GTL Infrastructure, Reliance Communications is now engaged in discussions with certain other strategic and financial investors, to pursue a similar transaction aimed at significant reduction in the company's debt and unlocking of value for RCom shareholders from the passive infrastructure and related assets in its 95 per cent-owned subsidiary, Reliance Infratel”.
Reliance Infratel is also proposing an initial public offering (IPO) of its equity shares and has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
