RCOM restarts talks for Infratel stake sale

29 Sep 2010

India’s Reliance Communications (RCOM) has said that it is once again holding negotiations with interested parties for the sale of a stake in its telecom tower unit, Reliance Infratel. According to Reuters, RCOM chairman Anil Ambani announced on Tuesday: ‘We are in discussions with strategic and financial investors to unlock value … The transaction structure of such a deal will comprise a combination of cash and stock, which will substantially bring down our debt,’ with the executive adding: ‘We also have the possibility … of combining such a transaction with a possible IPO.’

Earlier this month it was revealed that an agreement to spin off Reliance Infratel into a venture with GTL Infrastructure was not moving forward. The deal, which was first announced in June 2010, would have reportedly cut RCOM’s debt by around USD3.9 billion. Further, a plan to sell up to a 26% stake in RCOM, also announced in June, has yet to come to fruition, although the company said that there had been interest in such a deal.

India, Reliance Communications (RCOM)