India's 4th largest telecom operator Reliance Communications on Monday said it has short-listed bidders that have sought to acquire up to 100% stake in its tower subsidiary Reliance Infratel as reported by Economic times. Reliance Infratel has more than 45,000 mobile towers, and proceeds from the stake sale will help the company reduce debt this fiscal.
"The company has received indicative non-binding bids from a number of interested buyers, and has short-listed a smaller number of very credible interested parties to progress to the next round of the process," RCom said in a statement.
The company added it has short-listed some bidders that have expressed interest to acquire up to 100% of RCom's stake in Reliance Infratel."The due diligence process has now commenced. Further announcements will be made, as and when appropriate. The sale proceeds from the proposed transaction are expected to substantially reduce RCom's overall gross debt during the current financial year," the company added. The company had a net debt of Rs 38,595.7 crore at the end of June 30, 2015.
Also read: Reliance reports year on year growth in gross revenue by 34%.
Sources had said RCom was in talks with American Tower Company (ATC) and Carlyle and others for selling a majority stake in Reliance Infratel. "Further to our letters dated May 6, 2015, May 20, 2015 and June 29, 2015 to BSE and July 31, 2015 to NSE, we wish to inform you that the formal process for sale of a controlling 515 stake in Reliance Infratel was launched a few weeks back, and got a very positive response," the statement added.
