MUMBAI: Two buyers, including a consortium of four funds, have expressed an interest in acquiring or acquiring a majority interest in the remaining activities of Anil Ambani’s decaying telecommunications arm Reliance Communications (RCom).
The company, which has given up its flagship mobile communications business due to financial pressure and is also selling its spectrum, is thinking about selling its business offering, including submarine, international fixed and mobile networks.
“We also have two strategic buyers looking at the company today, and we’ll see where they can go in the next few months,” said Bill Barney, RC Barsch’s general manager, to the press.
He added that buyers would either seek a 100% purchase or at least a majority stake. The company is optimistic to have a net worth of one billion dollars, he said.
At the company’s annual general meeting, Ambani announced that RCom would completely leave the telecommunications sector to focus on real estate in the future. The sales proceeds would go to his creditors, he said.
“Our president mainly talked about retiring from the telecoms sector or retiring, he will not do it tomorrow, it will happen over time, it can take months, if not years,” Barney said.
He added that given the evolution of the events that have now reduced them to a fraction of the original activity, the two potential buyers will spend the necessary time exercising due diligence.
Among the two buyers is a consortium of four funds that have joined forces for the offer, he said.
Despite the announced exit plans, Barney said the company will continue its investment by stating that it plans to invest $ 100 million in a submarine cable connecting Italy with Hong Kong via India. He did not specify the time of the investment.
He will build his 10th data center and add three more in the next three years, he said, without giving the exact amount of investment. The company is also looking for partnerships with other companies, he said.
Barney said the company has enough capital to manage the investment.
RCom was pulled into the strategic debt rescheduling program after failing to meet its debt repayment obligations to a group of more than a dozen banks, including Chinese lenders, nearly 45,000 crore.
Under heavy financial pressure, the company left leading mobile communications group late last year and announced the sale of its spectrum assets to Reliance Jio, whose market entry is strong in the telecommunications sector.
Barney said the “new MRC” will have one-tenth of the company’s original employees serving 10,000 customers and having a debt of Rs 2,800.
The police commander responded to the announcement, closing Wednesday with a rise of 11.26% to Rs 12.85, while the benchmark was corrected by 0.30%.