Reliance Communications has appointed JP Morgan as its investment banker to advise on its strategic equity sale in the tower business, Reliance Telecom Infrastructure Ltd (RTIL). RTIL was recently demerged from the core mobile service business of Reliance Communications. The company is looking at selling about 5-10 per cent stake in RTIL. It’s believed to be in talks with strategic investors like American towers and Crown Castle; and private equity investors like Blackstone, Carlyle and Goldman Sachs.

A final decision is expected by the last week of June. RTIL currently owns over 14,000 towers, and is in the process of adding another 20,000 this fiscal.

Meanwhile, former BPL Mobile CEO Sandeep Basu has entered the tower business by floating a firm Xcel Telecom. Basu, who has got an equity commitment of $500 million from Texas-based investment fund Q Investment, plans to take stakes in the infrastructure companies of operators like Tata Teleservices, Idea Cellular and Bharti Airtel. It also plans to take stakes in small companies with around 50 to 100 towers, besides setting up their own towers. Basu told The Economic Times: “We have half-a-billion dollar kitty and an equity syndication is doable as and when needed.” India is said to be needing 3,30,000 towers by 2012, while it currently has about 100,000 towers.

Posted on 05/30/07, 3:51 PM
in: Main Page, Private Equity
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