Reliance sells towers to GTL in order to cut debt

Reliance Infratel, a subsidiary of India’s Reliance Communications, has revealed it is to spin off its 50,000 telecoms towers to GTL Infrastructure. Under the terms of the deal GTL will give Reliance equity and cash, as well as reducing Reliance’s consolidated net debt from INR330 billion (USD7.1 billion) to INR150 billion. Each Reliance shareholder will receive two to three shares in GTL. Reliance says the deal gives it ‘enhanced financial flexibility’ as it continues to look for a strategic partner to take a 26% stake in the company. Reliance added that it will retain its 200,000 kilometre fibre-optic network.