RCom zooms 6% after reports arm may sell stake to Bahrain co Batelco

It is redemption time for Anil Ambani.

Close in the heels of the Rs 1,200 crore network leasing deal with elder brother Mukesh Ambani’s Reliance Industries, now Reliance Communications is likely to get about Rs 6,000 crore through a sale of its arm’s stake.

According to a report in the Times of India, RCom will sell80 percent in Reliance Globalcom, a subsidiary that provides communications service globally, to a consortium led by Bahrain Telecommunications Company (Batelco). The report also said the company will sell itsDTH business to the Sun group for about Rs 2,000 crore

[caption id=“attachment_689921” align=“alignleft” width=“380”] Fore the last few years, RCom has been unsuccessfully trying to sell off a stake in its passive infrastructure subsidiary Reliance Infratel. Reuters[/caption]

Reacting to the report, shares of RCom have risen 6 percent.

Last week, RCom had announced that it has inked a deal with Reliance Jio to lease out fibre optics network for the latter’s 4G services.

RCom will get about Rs 9000 crore from all the three deals, which will be used to retire its debt which stands at about Rs 37,000 crore, the ToI report said.

Yipes in the US, management services business under Vanco in the UK and Flag Telecom are the operations under Reliance Globalcom, the report said.

Fore the last few years, RCom has been unsuccessfully trying to sell off a stake in its passive infrastructure subsidiary Reliance Infratel.

The fibre optic network deal, which analysts termed as a win-win, is the first business collaboration between the two Ambani brothers since they parted ways with split of their family business in 2005.

“We believe this to be a win-win situation for both RIL and RCOM,” analysts at Morgan Stanley said in their report.

“It should result in optimum utilisation of RCOM’s existing untapped infrastructure, and RIL will avoid incurring huge capex, gaining access to readily available telecom infrastructure for its telecom/4G foray.”

With inputs from Agencies