Anil Ambani's Reliance Communications company has agreed an $11 billion deal to create the world's largest independent telecom infrastructure company.
Reliance Infratel, a subsidiary of Reliance Communications, will merge its tower assets with GTL Infrastructure, part of Global group and the largest independent tower company in India.
As part of the deal, Reliance Infratel will retain its ownership of India's largest optic fibre network of over 200,000km and related assets, and gain free listed shares in the merged entity.
The new company will have over 80,000 towers and over 125,000 tenancy agreements from over 10 telecom operators. It hopes to profit from future prospects in India's high-growth telecom infrastructure sector.
Crucially for Ambani (pictured), cash from the deal will also be used to substantially reduce Reliance Communications' net debt, which is in the region of $7 billion.
The news is a fillip to Ambani following news that his brother Mukesh has entered into direct competition with him. Earlier this month, Mukesh announced that his Reliance Industries business is to purchase a substantial stake in telecommunications company Infotel Broadband Services. (Continue reading here)
The 53-year-old was able to enter into the telecoms industry after he and Anil, 50, agreed to scrap non-competition agreements between their respective conglomerates in May. (Continue reading here)
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