RCom share rises on PE deal for tower subsidiary

The scrip of Reliance Communications Ltd. (Rcom) rose 4.25% at Rs 69.95 at 2:24 pm IST on the Bombay Stock Exchange (BSE) on news reports that the company is at the final stage of talks with Private Equity (PE) firms Blackstone and Carlyle to sell its tower unit.

The company's scrip touched an intraday high of Rs 70.40 and a low of Rs 67.50 so far.

The deal with the PE firms could fetch as much as $4 billion for RCom. The company has a huge debt of $7.5 billion, with its stake sale, it would be able to trim its debt by $4 billion.

The company has been vending to sell the stake in its telecom tower subsidiary for more than one and half year now without any success.

Last year, the company had entered into an agreement with GTL, but deal got scrapped after couple of weeks with no specific reasons. The reports say that the company is in final stages of talks with Blackstone and Carlyle and is expected to announce final terms in next two weeks.

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