The assets of the Reliance Communications Ltd (RCom), being led by Anil Ambani, which were put down on the blocks seem to have found its highest bidder in the form of his elder brother Mukesh Ambani’s Reliance Jio Infocom Ltd. The announcement was put out by one of the people who witnessed the development. Commenting on the bid, a concerned person said that Bids have been received for all five asset packages. Reliance Jio has emerged as the highest bidder for 3-4 of the five asset packages of Reliance Communications. Highlighting that Jio’s bid was out of the box, the person added that it is almost unlikely that any other company can outbid Jio.
Commenting on the financial terms a bank official present at the bidding claimed that Jio was the highest bidder. It was also highlighted that Mukesh Ambani was more intrested in buying optical fibre assets, spectrum and tower infrastructure. It was also noted that no other firm was able to match the price which Jio was willing to pay. According to reports, it was found that Mukesh Ambani’s Jio had shown interest in acquiring spectrum, tower assets and optic fiber for which it has a sharing or trading agreement with the Anil Ambani-promoted firm.
The assets put up by the Reliance communications include real estate, fiber network, enterprise business, towers and spectrum. As per sources, if Jio acquires RCom it would result in the latest wave of consolidation in the telecom sector. The sale of Reliance communication assets came in after its merger deal with Aircel fell to found. In order to repay its creditors, the giant had presented a plan under which the company envisages raising Rs27,000 crore through sales of assets including spectrum, real estate and towers. It said that a further Rs7,000 crore will be reduced after lenders convert this into equity for a 51% stake.
If reports are to believed, the lenders have appointed Credit Suisse to help with bidding. The lenders to the firm have also roped in former Reserve Bank of India deputy governor SS Mundra to evaluate bids. Sources claim that the details of deal with Jio will soon be made public and the money received after bidding will be used to pay-off the debt of the company.