GTL lines up Rs 1100 cr acquisitions

GTL has placed non-binding offers on five companies in the US and Europe and lined up acquisitions worth Rs 1,100 crore in the next two quarters.

The Indian network services provider has already begun due diligence on the companies and will zero in on the firms which 'fit strategically' with its current activities.

"We might acquire all the five companies. This depends on the outcome of the due diligence," GTL Chairman and Managing Director Manoj Tirodkar said. He did not disclose the names of the companies, citing non-disclosure agreements.

"We are planning expansion and are scouting for acquisitions in the US, Europe and the Asia-Pacific region. This is to increase the contribution to our revenues from these regions to 50 per cent from the current 20 per cent," he said.

The acquisitions may take place in the network management space, costing more than Rs 1,000 crore. GTL intends to fund the acquisitions through internal accruals. Currently, GTL has over Rs 900 crore in cash reserves and the company had raised Rs 688 crore through an external commercial borrowing (ECB). Besides, GTL will also collaborate with companies in the passive telecom infrastructure business. GTL may also look at acquiring stakes in these newly spun-off tower companies. Telecom majors such as Idea Cellular, Reliance Communications and Tata Teleservices had announced the creation of separate companies to reduce the burden on their service operations.

Tirodkar also said GTL is open to strategic alliances and private placements.

"We don't rule out strategic alliances which help expand our footprint and consolidate our global business," he said.