Debt-laden telecom related infrastructure services provider GTL Ltd has decided to sell its operations, maintenance and energy management business (OME) to E2 Energy Services Pvt Ltd for Rs 850 crore (around $130 million), according to a press release.
The proceeds from the sale are expected to be used to pay dues to the lenders.
E2 Energy Services is a unit of India-focused energy firm Intelligent Energy Ltd, which is in turn part of UK-based Intelligent Energy Holdings Plc.
Manoj Tirodkar-controlled network services company GTL has already received approval from the board of the directors for the proposed transaction, which is now subject to necessary consents from regulatory authorities and lenders of the company.
GTL, which is going through the corporate debt restructuring process (CDR), is selling the business on a going concern basis by way of a slump sale, it said in the disclosure.
Headquartered in Bengaluru, Essential Energy is focused on distributed power and generation, initially targeting the Indian telecom infrastructure market to deliver clean, efficient and reliable energy to keep mobile networks connected.
On the other side, GTL is mainly into networks and network-related services—for utilities, telecom service providers and original equipment manufacturers (OEMs). In the telecom segment, the company provides network services to telecom operators, OEMs and tower companies.
For the financial year ended March 2015, the company posted total revenues from operations of Rs 2,496 crore against Rs 2,633 crore in the previous financial year. It posted a net loss of Rs 1,114 crore in the fiscal compared with a net loss of Rs 561 crore in the year-ago period.
Shares of the company last traded at Rs 11.75, up 4.91 per cent on the BSE on Thursday in a strong Mumbai market.