Shares of GTL Infrastructure jumped 8.60% to Rs 49.25. The announcement was made before trading hours today, 28 June 2010.
Meanwhile, the BSE Sensex was up 73.16 points, or 0.42%, to 17,647.69.
On BSE, 10.92 lakh Reliance Communications (RCom) shares were traded as against an average daily volume of 23.29 lakh shares in the past one quarter.
The stock hit a high of Rs 204.75 and a low of Rs 197.90 so far during the day. The stock had hit a 52-week high of Rs 319.70 on 1 October 2009 and a 52-week low of Rs 131.80 on 21 May 2010.
India's second largest telecom operator by sales has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5.
Financial terms of the deal were not disclosed, but the combined operations will have an enterprise value of over $11 billion and will own more than 80,000 towers, with more than 125,000 tenancies from over 10 operators.
Reports suggested that GTL Infrastructure's chairman Manoj Tirodkar will own 30% to 35% of the combined tower business and Ambani's Reliance Anil Dhirubhai Ambani Group will own 26%, with shareholders in the two firms holding the remainder.
Reliance Communications (RCom) said it will retain its optic fibre network and related assets. RCom will receive cash as part of the deal and its shareholders will get shares in GTL Infrastructure. RCom also said that cash infusion will lead to a substantial reduction of its consolidated gross debt and improve leverage ratio, contributing to enhanced financial flexibility.
Details on the cash infusion to RCom, and the share swap ratios will be finalised in due course, the statement said. The deal is expected to close within six months.
On a consolidated basis, Reliance Communications' net profit declined 19.5% to Rs 1170.11 crore on 14.9% decline in net sales to Rs 4698.24 crore in Q4 March 2010 over Q4 March 2009.
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