A day after it failed to meet Street expectations during the fourth quarter, Reliance Communications (RCom) has revealed that it has received ?formal indicative offers? from potential buyers for selling controlling stake in Reliance Infratel, RCom’s telecom infrastructure subsidiary.
RCom?s telecom infrastructure arm has about 50,000 towers with 78,000 tenancies and a tenancy ratio of 1.8. RCom has informed BSE that its board, based on indicative offers, felt such a transaction would facilitate RCom?s objectives of reducing debt burden.
For the year ended March 31, 2011, RCom?s net debt was R 32,048.5 crore, with net debt to funded equity ratio at 0.9%. The company has initiated ?strategic initiatives? to deleverage its balance sheet, Syed Safawi, head of RCom?s wireless business, had said on Monday when the company had revealed its quarterly numbers. RCom?s shares on the BSE closed at R 89.40, up 2.17% on Tuesday.
The company, in its filing, said the board had approved to take the process to the next stage with a view to completing the transaction early.