The deal between GTL and Rel Infratel being called off
September 7, 2010
The much awaited deal between Rel Infra and GTL has been recently called off due to the disputes in valuation. This seems to be a setback for RCom as this deal would have helped them to reduce their burden of debt by $3.9billion.
In June this year, a non binding term sheet for a merger was signed between GTL and RCom so as to have combined tower strength of 80,000 with a value of $11 billion, but now after 2 months the deal has been called off.
If this deal would have taken place then it would have created the largest independent telecom infrastructure in the world which would have not been controlled by any telecom operator. The deed which was signed between RCom and GTL was expired on 31st of August this year and after that no efforts were made by either of the companies so as to extend the deadline or get into a new contract.
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