Reliance Communications is closing in on a sale of its towers business Reliance Infratel, with four bidders still in the frame, it emerged this week.
Unnamed sources cited by the Economic Times on Thursday claimed the Indian operator is holding final talks with private equity firms Farallon Capital, Carlyle, Tillman Capital, as well as American Tower.
According to the report two suitors want to acquire Infratel outright, while the other two want to buy 51%.
"RCom would prefer to completely exit the tower business even if the deal comes at a slightly lower valuation as it needs the funds to reduce its debt," said the ET’s source.
At the end of June, Reliance Communications’ net debt stood at 385.96 billion rupees (€5.15 billion).
Reliance Infratel is 96% owned by RCom and is reportedly valued at INR200 billion-INR240 billion (€2.67 billion-€3.2 billion). It boasts 45,000 cell towers.
According to the ET’s source, the due diligence process is expected to be complete in two weeks, followed by final binding bids and financial commitments in a further two weeks.
