Reliance Communications (RCom) subsidiary Reliance Infratel (RINFRATEL’)and GTL Infrastructure Ltd. (GTL INFRA) approved a Rs.50,000 crore or $ 11 billion deal towards selling entire stake to GTL subsidiary, GTL Infrastructure Ltd. The deal is expected to be closed within 6 months time.

Post deal GTL Infra will emerge as the world’s largest independent telecom infrastructure company and India’s second largest telecom infrastructure firm after Indus Towers.

The deal will be implemented through a demerger of RINFRATEL’s tower assets into GTL INFRA.

However Reliance Communications will retain ownership of the optical fibre network.

The deal will result in cash infusion to RCOM, leading to substantial reduction of its consolidated gross debt and improved leverage ratios, contributing to enhanced financial flexibility.

The proposal will lead to substantial unlocking of value, through:

Recently Reliance Communications’ board had given a in-principle approval for offloading 26% stake in the company.