IDFC eyes at acquiring controlling stake in GTL Infrastructure

IDFC’s private equity arm, IDFC Alternatives is looking to pick up a controlling stake in telecom tower operator GTL Infrastructure. GTL Infrastructure’s lenders are likely to put a controlling stake in the debt-laden company before mid-2017. The PE fund is keen to only invest in assets where it can get a controlling stake and can drive growth and consolidation.

GTL Infrastructure owns and operates 27000 towers across 22 telecom circles in the country.

GTL Infrastructure has constituted a committee of independent directors to monitor the implementation of its SDR scheme. In September, the joint lenders forum decided to invoke the SDR scheme to convert GTL Infrastructure’s Rs 3300 crore outstanding loans into equity shares, which would translate into more than 51 per cent stake in the company.

According to RBI guidelines, the conversion of debt to equity under SDR should happen within 210 days of the review and reference date. Thereafter the induction of a new investor should take place within the next 18 months from the date.

IDFC Alternatives partially sold its stake in telecom tower operator Viom Networks. American Tower Corporation acquired a 51 per cent stake last year in Viom for Rs 7635 crore.

The share price of IDFC increased by 1 per cent on bourses in early trades; and is trading at Rs 55.75 on an intraday basis.