An $11 billion deal to create the world's largest independent telecom infrastructure company has collapsed, the Ambani family, who was behind the deal, announced on Monday.
The deal between Reliance Infratel, a subsidiary company of the Ambani family-controlled Reliance Communications, and GTL Infrastructure was announced in June and was set to become the largest deal involving a family company this year.
Reliance, headed by billionaire Anil Ambani (pictured), gave no reason for the failure of the deal, but said it was now speaking to other parties.
"Following the expiry of the non-binding Term Sheet with GTL Infrastructure, Reliance Communications is now engaged in discussions with certain other strategic and financial investors to pursue a similar transaction," it said in a statement.
The Mumbai-based company also said it was considering an initial public offering of Reliance Infratel and had filed a prospectus with the Securities and Exchange Board of India.
The collapse of the deal is a blow to Reliance, which was hoping to use cash from it to significantly reduce its $6.5 billion debt pile. The share price dropped sharply on the news but recovered to finish 0.43% down at 162.60.
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