The Hindu Business Line : GTL, Global Infrastructure boards okay restructure proposals

THE boards of GTL Ltd and Global Infrastructure Ltd (GIL), a 100-per cent subsidiary of GTL, today approved in principle de-merger of a part of the IT services division of GTL.

The GTL board has also appointed a committee of directors to approve a composite scheme of de-merger/reconstruction, which will go through approval procedures.

The restructuring proposals include transfer of infrastructure assets aggregating approximately Rs 214 crore by GTL to GIL for cash, which will be utilised for repaying GTL's debts.

The fair value of assests has been determined by independent valuers.

A part of GTL's IT services comprising an infrastructure undertaking worth Rs 101 crore will also go to GIL.

The shareholders of GTL will receive one share of GIL for every share of GTL. The appointed date will be October 1.

At present, FCCBs worth Rs 210.84 crore, issued by GTL, are pending conversion. Consequent to the split, the liability of GTL, on account of the FCCB, will be Rs 189.86 crore and that of GIL will be Rs 20.98 crore.

The exercise price of the ESOPs issued to employees will be re-priced due to the dilution in the value of GTL shares after de-merger.

GTL Technology Investments Ltd, a 100-per cent subsidiary of GTL, will be merged with GTL through a scheme of amalgamation.

This will enable GTL to consolidate investments in international business, e-security and infrastructure under GTL.

After the transfer of assets, de-merger and reconstruction, the residual surplus assets will be disposed off or impaired against securities premium account/capital redemption reserve or general reserve. The whole exercise will reduce the capital employed in GTL.

According to Mr Manoj Tirodkar, CMD of GTL, and Chairman of GIL, the restructuring will benefit both the companies.

He said GIL expects an order book of around Rs 1,100 crore in the next one year.

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