Intelligent energy in $1bn India deal

TECH company Intelligent Energy (IE) confirmed yesterday it has struck a £1bn, 10-year deal with Indian telecommunications firm GTL.

Loughborough-based IE already has an estate of more than 10,000 telecom towers in India, which it supplies with its hydrogen fuel cells. The firm has now reached an agreement in principle with GTL to increase this arrangement to over 26,000 towers.

According to IE, the deal is expected to secure more than £1bn of contracted revenue over the next decade. The company also said that the proposed business acquisition cost is expected to be less than the site acquisition costs. The purchase will be financed through a mix of locally sourced debt and IE’s existing cash resources.

IE’s announcement followed media speculation that the firm would enter into a deal in India.

IE floated in July last year, in a disappointing IPO which saw the firm’s shares quickly heading on a downward trajectory immediately following the listing.

However, in December IE chief executive Henri Winand stated: “The executive team is focused on managing the business and not staring at the share price.”

Shares in the company closed up 8.15 per cent yesterday.