Reliance Comm in loan talks with China's CDB
Thursday, 12 January 2012
HONG KONG/MUMBAI, Jan 11 (Reuters): India's Reliance Communications, which has a $925 million convertible bond maturing in March and has failed so far in efforts to sell its tower unit, is in talks with China Development Bank for a loan to redeem the bond, a person with direct knowledge of the matter said.
The company, controlled by billionaire Anil Ambani, has been trying for more than a year to sell its tower business in a deal that could be worth more than $3 billion.
Separately, two sources with direct knowledge of the matter said a deal for the towers, which would allow the company to pay down a big chunk of the $6.5 billion in net debt on its books as of the end of September, was not close to completion.
The company has been in talks with US buyout giants Carlyle Group and Blackstone Group on a deal for the towers business, sources have told the news agency.
Reliance Communications is looking to secure a leasing agreement for its towers from Reliance Industries, controlled by Anil Ambani's once-estranged brother Mukesh, before pressing forward with a tower sale, the two sources said.
In a statement to Reuters, a Reliance Communications spokesperson said, "RCOM will ensure timely redemption of FCCBs (foreign currency convertible bonds) due in March 2012," but declined further comment.
The company did not immediately respond to a query on the status of the tower sales process.
The company, controlled by billionaire Anil Ambani, has been trying for more than a year to sell its tower business in a deal that could be worth more than $3 billion.
Separately, two sources with direct knowledge of the matter said a deal for the towers, which would allow the company to pay down a big chunk of the $6.5 billion in net debt on its books as of the end of September, was not close to completion.
The company has been in talks with US buyout giants Carlyle Group and Blackstone Group on a deal for the towers business, sources have told the news agency.
Reliance Communications is looking to secure a leasing agreement for its towers from Reliance Industries, controlled by Anil Ambani's once-estranged brother Mukesh, before pressing forward with a tower sale, the two sources said.
In a statement to Reuters, a Reliance Communications spokesperson said, "RCOM will ensure timely redemption of FCCBs (foreign currency convertible bonds) due in March 2012," but declined further comment.
The company did not immediately respond to a query on the status of the tower sales process.