RCom clarifies on stake sale reports

Anil Dhirubhai Ambani Group (ADAG) company Reliance Communications (RCom) today said it had received various proposals from global telecom companies for acquiring a strategic equity stake in it.

“The company has been receiving various proposals from time to time from reputed international telecom companies expressing interest in acquiring a strategic equity stake in RCom. The company evaluates such proposals in line with its policy to constantly endeavour to enhance overall shareholder value,” RCom said in a filing to the Bombay Stock Exchange (BSE).

RCom shares closed about 11 per cent higher at Rs 154.60 on the BSE.

The statement came after a media report said that UAE-headquartered Etisalat was planning to pick up a 25 per cent stake in RCom for $3.8 billion.

RCom might be looking to raise some funds after it paid a huge amount for acquiring 3G spectrum through auction, said industry analysts.

Etisalat holds around 45 per cent in Indian mobile company Etisalat DB Telecom. It has licence to offer mobile services in 15 circles. According to existing regulations, a single entity cannot hold more than 10 per cent stake in two or more companies. So, either Etisalat has to sell its holding in Etisalat DB or merge it with RCom.