Mukesh Ambani to acquire stake in Reliance Infratel?
Mukesh Ambani’s Reliance Industries may buy a stake in his brother Anil’s Reliance Infratel, according to reports.
India’s Economic Times said today that the deal could also include leasing as many as 50,000 towers from Reliance Communications’ infrastructure arm.
Two sources told the publication that one part of the agreement involves leasing the towers at an arranged value at RS 8,500- 10,000 crore over a 10-year period with part of the lease amount paid up front.
The second part of the deal would see Ambani’s 4G entrant, Infotel Broadband, acquire a 15 to 25% stake in Reliance Infratel.
The stake sale is being negotiated at $3.4 to $4 billion but the two sides have not reached a final agreement, according to the sources. One said a contract could be inked next month.
On Thursday Gurdeep Singh, CEO of Reliance Communications’ wireless business, told reporters that the company was in negotiations with three operators for tower leasing deals.
Infratel is also said to be planning a public listing towards the end of the year to offload a 25% stake. Through this issue Infotel Broadband would dilute its stake to 5 to 10%, leaving Reliance Communications with a 55% stake and the remainder with strategic investors.