With a net debt of approximately $7 billion, Reliance Communications could have halved its debt, with the deal worth approximately $4 billion for India’s second largest operator. GTL owns infrastructure provider Global Holdings Corporation and has an enterprise value of over $11 billion. A joint venture would have enabled a combined entity of 80,000 towers.
“Reliance Communications is now engaged in discussions with certain other strategic and financial investors to pursue a similar transaction aimed at significant reduction in the company’s debt,” said the company in a statement.
India’s telecoms market is the world’s fastest growing with over 636 million subscribers. Fifteen operators are now competing for a significant market share. Reliance Communications invested over $1.8 billion in for 3G licence in 13 regional spectrums and increased its debt as a result.
