Reliance Group chairman Anil Ambani is close to signing two, separate deals to deleverage the telecommunications business.
The billionaire industrialist is combining Reliance Communications’ (RCom) wireless business with Aircel, which will make the merged entity a strong player in India, the world’s second largest market after China in terms of mobile phone subscriptions. Ambani is also close to selling RCom’s tower unit to Brookfield Asset Management as he tries to rejig the debt laden telecom business.The two transactions (wireless and tower) will help RCom to reduce its debt from Rs 42,364 cro re to Rs 10,000 crore.
The RCom board will meet on September 14 to consider the Brookfield offer, though formal announcement will follow pending documentation work, sources said.
Ambani is keen to clinch the deal with Aircel before the 15-day `Shradh’ period, considered inauspicious to start new projects, which begins on September 16. The deal also needs to be wrapped up well before the upcoming spectrum auc tions, as mergers and acquisitions are prohibited from the date of invitation for application till the end of the auction.
prabhat khabar epaper 09/09/2016 : http://epaper.prabhatkhabar.com