Anil Ambani's RCOM Expected to Finalise Three Deals, Including Merger with Aircel, by mid 2017

NEW DELHI - Feb. 22, 2017 - PRLog -- Reliance Communications, owned by Anil Ambani, is on the verge of finalising three proposed deals by the middle of 2017. This also includes its merger with Aircel. The telco giant agreed to sell its 51% stake in Reliance Infratel, Reliance Group's tower unit, to Canada's Brookfield Group for Rs 11000 crore.

Sale of tower unit to Brookfield and merger of RCOM and Aircel's wireless businesses are speculated to be completed by mid-2017. Another merger with Sistema Shyam Teleservices is also on the charts, and is likely to be closed by the end of March this year.

Reliance Communication sold 51% of its tower business to Brookfield Group in December. The telecom towers will now be demerged to form a separate new entity which will be 100% owned and independently managed by the Canadian company.

Speaking about three proposed deals, Gurdeep Singh, Co-CEO of RCOM said, "Consolidation is the only way forward in the industry. Reliance Communication is playing an upfront running role in the consolidation of the industry."

Brookfield and Aircel transactions are likely to cut down the debt recorded in RCOM's books by 70% by 2018. RCOMs debt stood at Rs 42,800 crore as of December 31.

Punit Garg, Head of Strategy and Regulatory Affairs at RCOM expressed that litigation involving Aircel won't have any impact on the merger process. He added that "Everything is on track."

Chennai-based Aircel is running the risk of cancellation of its licenses because representatives of its largest shareholder haven't appeared in connection with a case filed by the Central Bureau of Investigation.

Reference link: http://economictimes.indiatimes.com/news/company/corporat...