Telecom service provider Reliance Communications (RCom) on Tuesday announced that it is holding exclusive talks with with shareholders of telecom operator Aircel for a potential merger of their Indian wireless business of RCom and Aircel.
The company in a BSE statement said “it has entered into a 90-day exclusivity period with Maxis Communications Berhad (MCB) and Sindya Securities and Investments Private Limited, the shareholders of Aircel Limited, to consider the potential combination of the Indian wireless businesses of RCom and Aircel.”
The potential combination will exclude RCom’s towers and optical fibre infrastructure, for which RCom is proceeding with an asset sale, announced on December 4, 2015.
“The discussions are non-binding in nature. Any transaction will be subject to due diligence, definitive documentation and regulatory, shareholders’ and other third party approvals. Hence, there is no certainty that any transaction will result,” the company said.
RCom on December 4 announced that it had signed a non-binding pact to sell its cellular towers to private equity firm Tillman Global Holdings LLC and TPG Asia Inc in an estimated Rs 30,000 crore deal to pare debt.
The company is already in the process of buying Indian mobile telephony business of Sistema Shyam Teleservices under MTS brand.