Etisalat close to buying 26% in RCOM

NEW DELHI: UAE-based telecom operator, Etisalat, is understood to be close to buying a minority 26% stake in Anil Ambani group firm RCOM for over Rs 15,000 crore.

An RCOM spokesperson declined to comment while Etisalat officials did not respond to phone calls.

Sources close to the development, however, said Etisalat, which owns 45% in new telecom operator Swan, is working out modalities for the deal, as an operator cannot hold more than 10% stake in two telecom companies.

On the Bombay Stock Exchange, RCOM shares closed over two per cent up at Rs 191.25 a share amid reports that the UAE firm is close to picking up 26% equity. Etisalat can buy a stake in RCOM only after divesting its current holding in Swan Telecom, as Indian regulations do not allow a single company to own more than than a 10% stake in two telecom groups, as per existing guidelines. Sources said that Etisalat is talking to RCOM to buy stake at book value of Rs 252 a share as compared to its current market price of over Rs 191.