Sunday’s deal by the Anil Ambani-controlled Reliance Communications Ltd. to sell the phone tower assets of its unlisted unit, Reliance Infratel, to Indian telecom infrastructure firm GTL Infrastructure Ltd. has pleased investors and analysts alike.
Investors pushed RCom’s shares as high as 6.4% in morning trade to a session-high of 204.75 rupees — their highest level since October. Around noon India time, the stock was trading at 198.80 rupees, up 3.3%, making it the biggest percentage gainer on the Bombay Stock Exchange’s benchmark 30-stock Sensex, which was trading 0.5% higher.
The surge is tied to expectations that the sale of its tower assets will help India’s second-largest mobile phone operator by subscribers unlock value as it seeks to reduce its debt and fund expansion of services.
While the two firms did not disclose the sum for which morning trade sold the assets, they said the deal would create a combined entity with over 80,000 towers and an enterprise value of over 500 billion rupees ($11 billion). Under its terms, GTL Infrastructure will infuse cash into Reliance Infratel and pay in stock to Reliance shareholders under a swap ratio to be finalized later.
Read More On:blogs.wsj.com
No comments:
Post a Comment