RCom could confirm $3.5B tower sale next week - report

RCom could confirm $3.5B tower sale next week – report

24 NOV 2015

Reliance Communications’ (RCom) long mooted sale of its tower unit could be completed by next week, with the deal set to raise a reported INR290 billion ($3.5 billion).

Reuters reports either one or a consortium of private equity investors will buyout the operator’s 96 per cent stake in the tower unit, Reliance Infratel.

RCom, India’s fourth largest operator, launched a formal process to sell off a 51 per cent stake in the unit in May, but always indicated it would also be open to selling off its entire holding.

The operator received four bids for the unit in September, according to India’s Economic Times, with interest coming from US-based investment groups Farallon Capital, Carlyle, Tillman Capital and tower infrastructure group American Tower Corp, with two of the four keen to make the full buyout.

The same publication also reported earlier today a deal for the unit would actually be announced this week, before Reuters’ story broke, with both citing sources close to the matter.

One of Reuters’ sources said the unit, which has a portfolio of 45,000 masts and also boasts the country’s largest fibre network, has an equity value of approximately $2 billion.

American Tower Corp, one of the rumoured bidders, agreed to buy a 51 per cent stake in Indian tower company Viom Networks last month.


Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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