Reliance Communications (RCOM) is reportedly planning to sell a majority stake in its tower unit, Reliance Infratel. This would allow the company to focus on its core telecom business and launch 4G long term evolution (LTE) services, while the funds raised would help the company in reducing its debt.
RCOM is presently undertaking the process to select a banker for the stake sale, and has reportedly asked for bids from bankers including Morgan Stanley, Bank of America Merrill Lynch and JM Financial to run the process. The company intends to complete the sale process in 2015.
Reliance Infratel has about 45,000 towers and over 120,000 km of intra- and inter-circle fibre in its portfolio. Its valuation has been estimated to be about Rs 200 billion-250 billion. Presently, RCOM holds 96 per cent stake in Reliance Infratel, while the remaining stake is held by Quantum (M), NSR Partners, Galleon, HSBC Daisy Investment (Mauritius), Drawbridge Towers and Investment Partners B (Mauritius).