RCom, RInfratel, GTL Sanction Rs 50K Crore Agreement

RCom, RInfratel, GTL Sanction Rs 50K Crore AgreementThe Boards of Reliance Communications Ltd. (RCOM), and its arm, Reliance Infratel Ltd and GTL Infrastructure Ltd today in-principle sanctioned a Rs 50,000 crore agreement to create the world's biggest independent telecommunication infrastructure company, neither owned nor controlled by any telecom operator.

In a declaration, , RCom stated that this transformational agreement will be implemented via a demerger of RINFRATEL's tower assets into GTL INFRA.

India's biggest optic fibre network of more than 200,000 kms and related assets presently, owned by RINFRATEL will remain under RCOM's ownership.

The plan will result in substantial unlocking of value, through cash infusion to RCOM, leading to substantial reduction of its consolidated gross debt and improved leverage ratios, contributing to enhanced financial flexibility. It would also enable over two million shareholders of RCOM and minority shareholders of RINFRATEL to receive free listed shares of the merged entity. (With Inputs from Agencies)