Finance firms Farallon Capital Management, Blackstone and Tilman Financial, Carlyle and US-based American Tower Company are among eight bidders planning to place their bids for buying 50 per cent stake in Reliance Infratel. The parent company, Reliance Communications (RCOM) is seeking a valuation of Rs 250 billion- Rs 300 billion for its tower arm. This includes debt of about Rs 80 billion to be transferred to the tower company once the stake sale is completed.
In this stake sale, about eight firms will submit their bids. Out of this, two or three will be shortlisted for the final round in August 2015. The deal is expected to be announced by September 2015-October 2015.
UBS, Standard Chartered and SBI Capital Markets are the investment bankers involved in the process.
Reliance Infratel has about 45,000 towers in the country. Presently, RCOM owns 96 per cent of Reliance Infratel and the rest is held by minority and institutional investors, including Drawbridge Towers, Investment Partners B (Mauritius), George Soros’ Quantum (M), NSR Partners and others.
