GTL Redington merger called off

MUMBAI: GTL Ltd and the Singapore-based Redington Group said they would not proceed with their proposed merger. GTL had said in February that it would acquire Redington for $95 million in cash and stock.

The two companies had decided to call off the merger because Redington's shareholders could not unconditionally guarantee a vendor relationship with GTL over three to five years.

Redington's shareholders had also given substantial guarantees to their bankers and vendors, which, if reflected in GTL's balance sheet as a result of a merger, would be unviable for the Indian company and its shareholders, the company’s notice said.

GTL's shares were down 1.6 percent at Rs 66.10 at the Bombay Stock Exchange, whose main index was up 0.42 percent.

© Reuters