GTL Infrastructure is planning to raise up to $800 million by issuing fresh shares and through the sale of treasury stock. The funds will most likely be used to reduce the Rs 90 billion debt on the company?s books.
Earlier in 2010, GTL had acquired 17,500 towers from Aircel in a deal valued at Rs 80.26 billion. A special purpose vehicle (SPV), Chennai Network Infrastructure (CNIL), holds the acquired assets. The tower company is now looking to merge CNIL with GTL Infrastructure which will result in the creation of treasury stock worth Rs 18.5 to 19 billion that GTL Infrastructure had invested in the SPV.
The company is also looking to sell around 12 per cent equity to financial institutional investors and it would need to issue approximately 300 million new shares for such dilution.
