Anil Ambani's Reliance Communications (RCom), which recently sealed a deal with elder brother Mukesh Ambani's Reliance Jio, is looking at two prospective buyers for its leftover businesses.
Anil Ambani’s Reliance Communications (RCom), which recently sealed a deal with elder brother Mukesh Ambani’s Reliance Jio, is looking at two prospective buyers for its leftover businesses. News agency PTI reported that two buyers, including a consortium of four funds, have shown interest in taking control of leftover businesses of RCom.
Last year, RCom was forced to undergo strategic debt restructuring (SDR) after it failed to pay dues to several lenders to the tune of Rs 45,000 crore. RCom exited its flagship wireless businesses and is also looking to sell undersea cables, international fixed line and data centres businesses.
RCom’s chief executive officer Bill Barney told reporters, “We also do have two strategic buyers that are looking at the company today as we speak. We will see where it can go over the next few months.” He said that the buyers are interested in 100% buyout or controlling stake in a deal which could be worth $1 billion.
While the company is looking for buyers, Barney said that the company will continue with its plan to invest $100 million in the undersea cable running from Italy to Hong Kong via India.
Earlier this month, Anil Ambani announced that RCom would exit its telecom business completely to concentrate on real-estate in future. At the company’s 14th annual general meeting, Anil Ambani said that he has moved out of the mobile sector and will monetise the enterprise business at an appropriate stage.
As part of monetisation efforts, Anil Ambani sold RCom’s media convergence nodes (MCNs) and related infrastructure assets worth about Rs 20,000 crore to Jio. The deal is at an advanced state of closure. On this deal, Anil Ambani thanked elder brother Mukesh Ambani at the AGM. “It would be most appropriate for me to thank and acknowledge the support (and) guidance extended to RCom and me personally by my brother Mukesh bhai Ambani,” Anil Ambani said.