The country’s second-largest wireless carrier, Reliance Communications (RCOM) hived off its tower business to GTL Infrastructure for Rs 50,000 crore ($11 billion) to create the world’s largest telecom infrastructure company not controlled by a telecom operator. The boards of the Anil Ambani-promoted RCOM and its subsidiary, Reliance Infratel (Rel Infratel), and GTL Infrastructure (GTL Infra), a company promoted by Manoj Tirodkar, have approved the transaction. The deal will be implemented through a demerger of Rel Infratel’s tower assets into GTL Infra. Along with the substantial unlocking of value, the deal will help RCOM reduce debt and invest in network upgrades. RCOM, the flagship firm of the Reliance ADA group, has a net debt of Rs 33,000 crore. Selling off the tower assets has ensured that its net debt gets cut by Rs 18,000 crore, leaving a debt of Rs 15,000 crore.
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