Reliance Communications may receive offers from PEs for its tower biz; stock down

Billionaire Anil Ambani-controlled Reliance Communications may receive a number of preliminary offers for a controlling stake in its tower business from a combination of strategic and private equity investors, according to four people familiar with an auction process that the company has initiated with the help of UBS.

Viom Networks, a telecom tower JV between Tata Teleservices and Quippo, a SREI Group enterprise, has confirmed its interest for Reliance Infratel’s towers. Hemant Kanoria, chairman & managing director, Viom Networks, said: “We are definitely interested in Reliance Infratel’s towers but haven’t begun any due diligence on the company so far.”

Other potential bidders for a controlling stake in Reliance Infratel include American Tower Corporation and UAE’s largest telecommunications provider Etisalat, at least two of the people quoted above said. UBS is also said to have approached buyout funds Carlyle and Apax Partners on behalf of Reliance Communications.

At 10:03 am, shares of Reliance Communications were trading 0.27 per cent down at Rs 92.80 on the Bombay Stock Exchange.