GTL Infrastructure Ltd · NSE:GTLINFRA
GTL Infrastructure — Merger or Acquisition (January 2010)
20 slides from GTL Infrastructure's merger presentation, January 2010
Slide 1: GTL Infrastructure: Purchase of Aircel Tower Business
GTL Infrastructure Purchase of Aircel Tower Business (Investors, Analyst & Media Presentation) Safe harbor Neither the information nor any opinion expressed in this presentation constitutes an offer, or invitation to make an offer, or to buy any security issued by the company. This presentation cont
Slide 2: Presentation Outline
Presentation Outline Global Group Profile GTL Infra at a Glance Aircel Tower purchase at glance Transaction Rationale Road Ahead Conclusion 2
Slide 3: Global Group Profile
Global Group Profile 22 Years of Service in telecom industry Group Revenue of US$ 1.2 Bn for FY 11E ` The Group is Group Balance Sheet size of US$ 5 Bn as on March 11E focused on Network Services and Aggregate Market Cap of US$ 1.9 Bn* Shared Telecom Project Execution in 44 Countries across 70 Netwo
Slide 4: GTL Infra at a Glance (Post deal)
GTL Infra at a Glance (Post deal) Business Shared Passive Telecom Infrastructure Provider Tower Portfolio 32,500 towers Balance Sheet Size US$ 3.5 Bn Presence 23 Circles across India Customers All major Indian Telecom Operators Awards Won ‘Innovative Infrastructure Company of the Year’ Stock Listed
Slide 5: Aircel Tower purchase at Glance
Aircel Tower purchase at Glance Enterprise Value Rs. 8,400 Crores No. of Towers 17,500 acquired No. of Tenants acquired 21,000 Future Commitment 20,000 towers over the next 3 years Financial Advisors Citi; Barclays Largest all cash asset purchase transaction in Indian Corporate history 5
Slide 6: Terms of Agreement
Terms of Agreement Site Rentals (GBT) GBT- Rs. 31,500 p.m. Site Rentals (RTT) RTT- Rs. 21,000 p.m. Tenure of the 15 years contract Escalation Annual rental escalation of 3 % Future Commitment 20,000 towers over the next 3 years 6
Slide 7: Transaction Rationale
Transaction Rationale Accelerated Growth Assured immediate recurring revenue of Rs. 700 Crores for next 15 years on p.a. basis Additional Commitment of at least 20,000 anchor sites over next 3 years to provide additional recurring revenue of Rs. 700 Crs on p.a. basis Total recurring revenue opportun
Slide 8: Complementary Network Footprint Post Acquisition
Complementary Network Footprint Post Acquisition GTL Infra* Aircel Towers Pro-forma No.of Towers 15,000 17,500 32,500 Tenancy 1.14 1.20 1.17 GBT/RTT Mix 88/12 63/37 74/26 * Expected at the time of Completion of the deal in May 10 Comprehensive Tower footprint on pan India basis 8
Slide 9: Financing the transaction
Financing the transaction Fully funded financing to undertake transformational transaction Transaction size Rs. 8,400 Crores Equity investment of Rs. 3,400 Crores from GTL Infrastructure and its promoters Debt funding of Rs. 5,000 Crores by consortium of banks 9
Slide 10: Comparable Valuations (Global Peers) EV/Tower
Comparable Valuations (Global Peers) EV/Tower 3.75 3.30 3.17 3.00 2.51 Rs. Crs. 2.25 1.50 0.75 0.42 - AMT SBAC Crown Castle GTL Infra-Aircel Source: Market Data & Deutsche Bank Research Reports, Dec 09 10
Slide 11: Comparable Valuations (Domestic Peers) EV/Tower
Comparable Valuations (Domestic Peers) EV/Tower 2.00 1.75 1.50 Rs. Crs. 1.00 0.95 0.55 0.52 0.50 0.42 - Bharti InfraTel RTIL Indus Tata-Quippo GTL Infra-Aircel Source: Reliance Equity & ICICI Research Report and Market Data 11
Slide 12: Comparable Valuations (Global Peers) EV/Tenant
Comparable Valuations (Global Peers) EV/Tenant 1.50 1.27 0.94 Rs. Crs. 1.00 0.77 0.50 0.35 - SBAC AMT Crown Castle GTL Infra-Aircel Source: Market Data & Deutsche Bank Research Reports, Dec 09 Source: ICICI Research, Internal Team estimates 12
Slide 13: Comparable Valuations (Domestic Peers) EV/Tenant
Comparable Valuations (Domestic Peers) EV/Tenant 1.50 1.31 1.00 Rs. Crs. 0.59 0.50 0.50 0.39 0.35 - Bharti InfraTel RTIL Indus Tata-Quippo GTL Infra-Aircel Source: Reliance Equity & ICICI Research Report and Market Data 13
Slide 14: Comparable Capital Structure
Comparable Capital Structure Debt/Equity 5.00 4.06 Debt/ Equity 4.00 3.00 2.08 2.00 1.26 1.21 1.00 - SBAC Crown Castle American Tower GTL Infra*(post Deal) Source: Deutsche Bank Research Report. Dec 09 * Assuming full conversion of outstanding Debt 14
Slide 15: The Road Ahead
The Road Ahead Completion of transaction expected by May 2010, subject to necessary statutory, regulatory & lenders approvals Formation of a joint Integration Committee Commencement of additional Rollout of 20,000 towers for Aircel’s Network requirement Maintain robust capital structure and financia
Slide 16: Post Deal Industry Scenario
Post Deal Industry Scenario Independent & Neutral global players 60,000 50,500 50,000 40,000 32,500 30,000 25,413 24,025 20,000 7,991 10,000 - GTL Infra GTL Infra American Crown SBAC with Towers Castle commitment of 20,000 towers Source: Deutsche Bank Research Report. Dec 09 Creation of Largest Inde
Slide 17: Deal Impact on Semi-urban and Rural India
Deal Impact on Semi-urban and Rural India Investment of Rs 10,000 Crores in semi urban and rural India No. of towers in semi urban and rural India 9900 towers on DEC 09E 24000 towers on completion of deal Creation of 50,000 new jobs Connectivity to the poorest of poor in semi-urban and rural India 1
Slide 18: Deal Impact on Environment
Deal Impact on Environment Expected Consumption of Diesel by 450,000 towers in FY 13E – 1.8 bn litre GTL Infra will save around 20% consumption of diesel through Sharing of telecom towers Providing Energy Management Solutions Usage of alternative fuel and technologies Greener environment through red
Slide 19: Conclusion
Conclusion Transformational Deal - Creating the world’s largest independent & neutral tower Company; building partnership with one of the leading National operators in the country US$ 1.8 Bn -Largest all cash purchase transaction in Indian Corporate history Value Added Services –Substantial cost sav
Slide 20: Thank you
Thank you Contact Information: E-Mail : [email protected] Tel: +91 22 22715308 : +91 22 22715370
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