Indian mobile phone operator Reliance Communications (RCom) is awaiting clarity on regulatory issues in the country before proceeding with the sale of its tower unit Reliance Infratel.
Punit Garg, an RCom president, was quoted saying during the…
Indian mobile phone operator Reliance Communications (RCom) is awaiting clarity on regulatory issues in the country before proceeding with the sale of its tower unit Reliance Infratel.
Punit Garg, an RCom president, was quoted saying during the company’s Q4 earnings call that the operator is, however, still in talks with potential investors.
RCom first announced a year ago that it had received offers for Infratel’s 50,000 towers. A few months later, private equity firms Blackstone and Carlyle emerged as most likely buyers for those towers.
A deal, which could reportedly fetch between Rs150bn (US$3bn) and Rs20bn (US$4bn), would allow the operator to reduce its debt load, currently at about US$7bn.
But for several months now, the 2G scam and the subsequent decision by India’s Supreme Court to cancel 122 licences have blurred the future for some telcos in the country.
In early March, RCom had reportedly said that it would postpone the sale of Infratel after two of its customers, Etisalat DB and S-Tel, decided to scale down their operations following the cancellation of their licences.
About 18 months ago, RCom was very close to a deal with another tower company, GTL. The US$11bn tower merger later failed because of alleged valuation differences.
Meanwhile, the operator is reportedly close to listing its cable unit Flag Telecom, with roadshows expected to start this week. A 75% stake in the cableco is estimated to fetch between US$1bn and US$1.5bn.
