Indian telco Reliance Communications (NSE:RCOM) is reportedly in the final stages of the process to sell its stake in tower unit Reliance Infratel, with four US bidders remaining.
Indian telco Reliance Communications (NSE:RCOM) is reportedly in the final stages of the process to sell its stake in tower unit Reliance Infratel, with four US bidders remaining.
American Tower (NYSE:AMT) and private equity firms Carlyle, Farallon Capital and Tillman Capital are the short-listed bidders, according to people familiar with the matter cited by the Economic Times. Infratel is reportedly valued at Rs200bn – Rs240bn (US$3bn-US$3.6bn), which includes about Rs80bn (US$1.22bn) of debt.
Two of the bidders would like to buy RCom’s entire 96% stake, while the other two want a 51% holding, the report stated.
Management presentations have reportedly been done, due diligence is expected to be completed by the first week of October at the latest and final bids and an agreement are expected a fortnight afterwards – around 20-22 October.
In mid-August, RCom said it had received non-binding bids from “a number” of interested parties for a controlling stake in the tower unit and shortlisted some of these to progress to the next round.
The process was for a 51% stake, but RCom said some bidders had shown interest in buying its entire stake. Standard Chartered and SBI Capital Markets are advising RCom.
India’s fourth-largest mobile operator expects the proceeds from the sale to “substantially reduce” its debt, which stands at about Rs8bn (US$125.24m).
RCom, Farallon and Tillman were not immediately available for comment, while American Tower and Carlyle declined comment.
RCom is set to hold its AGM on 30 September.