Reliance Communications Ltd (RCom) is following Bharti Airtel’s footstep to reduce its debts, by selling a stake in its telecom towers unit. The company has invited proposals from bankers, revealed RCom in a filing to BSE.
“The company has invited certain investment banks to make proposals for running a process to monetize the valuable tower and fibre assets held in its subsidiary, Reliance Infratel Ltd within the current financial year,” report said.
It already announced plans to reduce its debts and was considering strategic alternatives to perform the same. Anil Ambani-owned RCom reported a consolidated debt of Rs.31,839.00 crore as of September 2014.
There were other reports that said RCom is planning to sell a stake in Reliance Infratel Ltd at a valuation of Rs.20,000 crore-25,000 crore. For the purpose, RCom has sought reports from top investment bankers such as Morgan Stanley, Bank of America Merrill Lynch and JM Financial among others.
Reliance Infratel owns 45,000 towers and more than 120,000 km of inter and intra circle fibre. It is the third largest tower company after Indus Towers and Bharti Airtel.
During February, Bharti Airtel too raised $310 million through a secondary share sale in its mobile tower unit Bharti Infratel Ltd, which the company used primarily to reduce debt.