GTL Infrastructure’s proposed deal to acquire and merge Reliance Communications’ (RCOM) tower assets has been called-off. The two companies could not reach an agreement within the stipulated time frame as the non-binding term sheet signed by them on June 27, 2010, expired on August 3, 2010. In June, 2010, GTL and RCOM had agreed to combine their tower operations to form an independent tower company that would own more than 80,000 towers and have an enterprise value of over $11 billion. While the two companies have not specified any specific reasons for the cancellation of the deal, it has been reported that the two could not reach an agreement on the financial structuring of the deal. Meanwhile, RCOM has started looking for other investors for the sale of its tower assets.
