GTL Infra completes Aircel deal

GTL Infrastructure Limited (GTL Infra), India’s largest independent tower company, today completed the purchase of telecom towers of Aircel Limited and its subsidiaries in an all cash deal.
With this deal, GTL gets 17,500 telecom towers of Aircel. There are 21,000 active tenants on these towers. Enterprise value of the deal is Rs. 8,026 Crore.
There is also a commitment (backed by Bank Guarantee) of additional 20,000 tenancies to GTL Infra over next three years from Aircel Limited and its subsidiaries.
This transaction has made GTL Infra the World’s largest neutral and independent tower company with a portfolio of around 32,500 towers across all 23 telecom circles.
This transaction has also enabled GTL Infra to achieve a sizeable tower portfolio in high Average Revenue Per User (ARPU) generating Metros and Class A cities, which would help in attracting new 2G/3G/Broadband Wireless Access (BWA) operators.
Aircel has won 3G & BWA spectrum in 13 & 8 circles respectively. Since GTL Infra has a sizable tower portfolio in all these respective circles, it can cater to 3G and BWA requirements of Aircel in an effective manner.
GTL Infra has acquired these assets through its subsidiary, Chennai Network Infrastructure Ltd. (CNIL). This transaction shall result into a immediate annual recurring revenue for CNIL/GTL Infra of Rs. 720 Crore for next 15 years with 3% escalation per annum.
Furthermore, on successful completion/execution of additional commitment of 20,000 tenancies from Aircel, GTL Infra may receive additional recurring revenue of Rs. 600-650 Crore p.a. Thus, the aggregate annual recurring revenue is likely to go up to Rs. 1,350- 1,400 Crore from this transaction alone.