0
Mobile & Wireless

Mukesh Ambani may buy stake in Anil's Reliance Infratel

Friday 25 January 2013 | 13:33 CET | News

India-based Mukesh Ambani's Reliance Industries (RIL) telecom arm Infotel Broadband, may buy a stake in Reliance Infratel, a company belonging to Anil Ambani, in a deal that also includes leasing as many as 50,000 towers, reports The Economic Times. Two people close to the ongoing negotiations said the deal had two components. One part is a leasing arrangement valued at INR 85-100 billion over a ten-year period. One of the people said a part of the lease amount will be paid up front. If the lease deal is a success, it will enable RIL to use nearly 50,000 towers of Reliance Infratel. The second component of the deal being negotiated between the two Reliance groups consists of RIL's Infotel Broadband buying 15-25 percent in Reliance Infratel.

The stake sale is being negotiated at an enterprise value of USD 3.5-4 billion for the company. The valuation would mean cash inflow of INR 28.5-53 billion for RCom, all of which will be used to retire debt. The two sides had not reached a final agreement, the people close to the deal cautioned. One of the two said a contract could be inked in February. RCom CEO of wireless business said that the company is in negotiations with three telecommunication operators for tower-leasing deals. One of the persons close to the deal said Infratel is planning a public listing towards the end of this year to offload a 25 percent stake. Through the issue, Infotel Broadband will dilute its stake to 5-10 percent, leaving 55 percent with RCom and the rest with investors, which currently hold 5 percent.


Categories: Mobile & Wireless
Companies: Infratel / RCom / Reliance Industries
Countries: India
::: add a comment

Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.






-8.2%
Total Dutch mobile service revenues drops annually with 8.2%
Netherlands  |  2014 Q2

Calendar   /   Industry Events

21 Oct Broadband World Forum
21 Oct Customer Experience Management in Telecoms
22 Oct EE Q3 2014
22 Oct DTAC Q3 2014
22 Oct Turk Telekom Q3 2014
22 Oct NXP Semiconductors Q3 2014
22 Oct AT&T Q3 2014
22 Oct Logitech Q3 2014
22 Oct Infinera Q3 2014
22 Oct Fortinet Q3 2014
22 Oct Orange Polska Q3 2014
22 Oct EMC Q3 2014
22 Oct Polycom Q3 2014
22 Oct Millicom Q3 2014
22 Oct Espial Q3 2014
23 Oct Netgear Q3 2014
23 Oct ShoreTel Q1 FY 2014/15
23 Oct Ingram Micro Q3 2014
23 Oct Amazon.com Q3 2014
23 Oct ADVA Optical Networking Q3 2014
23 Oct Synaptics Q3 2014
23 Oct Microsoft Q1 FY 2014/15
23 Oct Comcast Q3 2014
23 Oct Nokia Q3 2014
23 Oct Altera Q3 2014
23 Oct Sonus Networks Q3 2014
23 Oct Sequans Communications Q2 2014
23 Oct Tele2 Q3 2014
23 Oct Telenet Q3 2014
23 Oct Rogers Communications Q3 2014
23 Oct Telekom Austria Q3 2014
23 Oct America Movil Q3 2014
23 Oct Orange Q3 2014
23 Oct 2nd Enterprise Mobility China Summit 2014
::: More Calendar Items