GTL Infrastructure has acquired Aircel's tower business in a Rs 8,400-crore
all-cash deal.
The company is likely to fund the transaction through fresh equity of Rs
3,400 crore from its group companies, while Rs 5,000-crore debt is funded by a
SBI Caps-led consortium. GTL has structured the transaction through SPV to
purchase Aircel's 17,500 towers. The deal is likely to be finalised by May 2010.
Post the deal, GTL likely to invest another Rs 600-800 crore to upgrade the
acquired business. The SPV may be merged with GTL at a later date. The company
plans to roll out another 20,000 towers.
GTL currently has 15,000 towers and combined with Aircel's 17,500, the
company will have 32,500 towers by May 2010.