American Tower and The Carlyle Group are reportedly in the lead to buy Indian telco Reliance Communications’ (RCom) 51% stake in towerco Reliance Infratel.
There are five or six potential suitors, with initial bids in the Rs200bn to Rs240bn…
American Tower and The Carlyle Group are reportedly in the lead to buy Indian telco Reliance Communications’ (RCom) 51% stake in towerco Reliance Infratel.
There are five or six potential suitors, with initial bids in the Rs200bn to Rs240bn (US$3.13bn to US$3.76bn) range, the Economic Times reported. The company has some Rs8bn (US$125.24m) in debt.
Boston-based American Tower’s local unit ATC India agreed earlier this year to buy telecoms sites from KEC International for about Rs810m (US$13m).
Washington-based Carlyle, for its part, is already present in India’s technology, financial services and healthcare sectors.
Due diligence is reportedly expected in July or August ahead of management presentations and final bids, with completion due in September or October.
Standard Chartered and SBI Capital Markets are advising RCom.
RCom will initially retain a 49% stake but gradually reduce it, eventually considering a complete exit, one source was cited saying.
RCom currently has a 96% stake in Infratel, while the remaining 4% of shares are held by investors including George Soros’ Quantum, NSR Partners, Galleon, HSBC Daisy Investment, Drawbridge Towers, and Investment Partners B.
The sale would allow RCom to focus on core operations and address its debt pile.
RCom reported revenues of Rs220.9bn and net debt of Rs367bn for the year ended 31 March 2015.
RCom, American Tower and Carlyle were not immediately available for comment.
