Reliance Infratel, the tower arm of Anil Ambani-led Reliance Communications (RCom), will be merging its Rs 50,000 crore ($11 billion) with GTL Infrastructure in a cash and stock deal.
The deal also sets record as the largest merger and acquisition in India.
Reliance Communications announced the deal on Sunday, Jun 27. However, the likelihood of a deal between Reliance and GTL had earlier been reported in a leading business publication in the beginning of Jun 2010.
With the boards of Anil Ambani-promoted RCOM and its subsidiary, Reliance Infratel, and GTL Infrastructure approving the deal, the next step would be implementation through a demerger of Rel Infratel's tower assets into GTL Infra.
Earlier in Jan 2010, GTL Infrastructure (GTL Infra), a company promoted by Manoj Tirodkar, grabbed Aircel"s 17,500-tower portfolio.
Responding to the news, Reliance Communications surged 4.62 per cent to Rs 201.40 in early trade (at 9:15 am).