India’s Reliance Communications (NSE:RCOM) has received non-binding bids from “a number” of interested parties for a controlling stake in tower unit Reliance Infratel.
The telco said in a stock exchange filing that it has shortlisted “a…
India’s Reliance Communications (NSE:RCOM) has received non-binding bids from “a number” of interested parties for a controlling stake in tower unit Reliance Infratel.
The telco said in a stock exchange filing that it has shortlisted “a smaller number of very credible interested parties” to progress to the next round of the sales process.
While the process, launched a few weeks ago, is for a 51% stake in Infratel, RCom said some of the short-listed bidders have expressed interest in acquiring its entire 96% stake in the business.
Due diligence is now underway and further announcements will be made in due course, RCom added.
The company expects the proceeds from the sale to “substantially reduce” its debt, which stands at about Rs8bn (US$125.24m).
Local reports in late June said American Tower and US private equity firm The Carlyle Group were leading the bidding process. According to the reports, the five or six potential suitors had presented initial bids in the Rs200bn-Rs240bn (US$3.13bn-US$3.7bn) range. The sale is expect to close in September or October.
Standard Chartered and SBI Capital Markets are advising RCom.
