The merger of GTL, formerly Global Tele-Systems, with the Redington Group, a Singapore-based infotech firm, will lead to a significant change in the shareholding pattern of the company.
After the merger, the Chanrai group, promoters of the Redington Group, is expected to pick up a 16.81 per cent stake in GTL, while the shareholding of the existing promoters of GTL will reduce to 20.47 per cent. Indian promoters have a 25.5 per cent stake in the company.
The GTL board had decided to acquire Redington for $95 million, of which $50 million was to be paid in cash and the rest through an equity swap. The board today approved the proposal to issue 14.3 million shares of GTL at Rs 150 a share, face value of Rs 10 and premium of Rs 140, for a consideration of Rs 214.50 crore, or $44.69 million.
With the fresh issue of shares, GTL's share capital will increase to Rs 85.09 crore from Rs 70.79 crore. The merger will take effect from April 1.
GTL promoters said they might adopt the creeping acquisition route to enhance their stake in the company to at least 26 per cent. However, they did not elaborate on the time span or the means of financing the acquisition.
Manoj Tirodkar, chairman and managing director, GTL, said:
