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Private equity firms to buy Reliance’s towers
14 November 2011
Blackstone and Carlyle in talks with Reliance Communications for pay $3.5bn for tower unit
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Reliance
RCom
India
Carlyle
Blackstone
Reliance Infotel
private equity
Reliance Communications is in talks with a consortium of private equity firms Blackstone and Carlyle for the sale of its tower unit. A deal is expected to take place by the end of the year, according to the Times of India, with the sale expected to fetch more than $3.5 billion.
Blackstone is expected to be the lead investor in the deal. RCom could finish a tower sharing agreement with Reliance Infotel before the tower unit sale, which would help boost the value of the tower unit. Reliance Infotel would pay approximately $100 million as part of its long-term tower sharing deal with RCom.
Blackstone and Carlyle had been assessing a joint offer for the unit consisting of 50,000 towers, which was put on sale by RCom in a bid to reduce its debt of $6.3 billion. GTB
Further reading:
Reliance wants $5bn for tower unit stake 22 Aug 2011
TPG and Carlyle talk over Reliance towers 08 Jun 2011
Reliance and GTL end $9bn tower deal 07 Sep 2010
Reliance to sell telecom and tower assets 18 Jun 2010