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RCom planning asset sales
Posted on Wednesday, 14 February 2018 06:59
Indian telecommunications player Reliance Communications (RCom) intends to conduct some divestments of assets in a bid to raise funds.
The Bombay Stock Exchange-listed company has issued a regulatory filing, in which it says it has convened a meeting of senior secured notes, with a view to getting the necessary approvals to conduct transactions.
Any deal would require certain green lights and as such, there is no guarantee of one going ahead, while RCom has also stopped short of identifying which operations it is considering jettisoning.
However, the firm did say it had disclosed more information as part of the letter it sent to bondholders.
This is not the first time RCom has sought to offload assets in recent months; in late December, it agreed to divest its mobile tower and fibre optic network operations to Reliance Jio Infocomm for INR 240.00 billion (USD 3.73 billion) in cash.
Prior to that it committed to sell Reliance Big TV to Pantel Technologies and Veecon Media & Television for an undisclosed consideration.
RCom describes itself as one of India’s top private sector business houses in terms of net worth.
The company’s customer base numbers over 118.00 million, including some 2.60 million individual overseas retail customers, as well as 39,000 Indian and multinational corporations.
Its offering includes 2G, 3G and 4G wireless and wireline services in India, while it also operates ten data centres in four cities with a total capacity of 1.10 million square feet.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 66 deals targeting wired and wireless telecommunications carriers announced worldwide during 2018 to date.
The most valuable of these featured Sweden-based Modern Times Group, which agreed to sell its Nordic Entertainment and Studio businesses to Denmark-headquartered TDC for USD 2.48 billion early this month. Completion is slated to follow by the end of this year.
© Zephus Ltd