RCOM offloads stake in its tower company
RCOM has offloaded 5 per cent stake in its tower company, Reliance Telecom Infrastructure Limited (RTIL), for $337.5 million. The stake was sold to seven international investors from the US, Europe and Asia at Rs 135 per share.
The transaction valued RTIL at $6.75 billion and resulted in capital gains of about $280 million for RCOM. JP Morgan was the financial adviser for the transaction. Meanwhile, RCOM is planning to offload an additional 26 per cent stake in RTIL. By offloading a higher quantum of stake, the company is expected to get a 20-30 per cent premium over the earlier valuation of RTIL. The company is also planning to invest Rs 160 billion in network expansion in financial year 2007-08. The proposed investment will be used to set up 23,000 mobile towers, and launch direct-to-home and WiMax services.
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