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Etisalat close to buying 26 percent in RCOM
Tuesday, 20 July 2010, 21:08 IST |
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NEW DELHI: UAE-based telecom operator, Etisalat, is understood to be close to buying a minority 26 percent stake in Anil Ambani group firm RCOM for over 
15,000 crore.
An RCOM spokesperson declined to comment while Etisalat officials did not respond to phone calls.
Sources close to the development, however, said Etisalat, which owns 45 percent in new telecom operator Swan, is working out modalities for the deal, as an operator cannot hold more than 10% stake in two telecom companies.
On the Bombay Stock Exchange, RCOM shares closed over two percent up at 191.25 a share amid reports that the UAE firm is close to picking up 26 percent equity. Etisalat can buy a stake in RCOM only after divesting its current holding in Swan Telecom, as Indian regulations do not allow a single company to own more than than a 10 percent stake in two telecom groups, as per existing guidelines. Sources said that Etisalat is talking to RCOM to buy stake at book value of 252 a share as compared to its current market price of over 191.
Source: PTI
15,000 crore.
An RCOM spokesperson declined to comment while Etisalat officials did not respond to phone calls.
Sources close to the development, however, said Etisalat, which owns 45 percent in new telecom operator Swan, is working out modalities for the deal, as an operator cannot hold more than 10% stake in two telecom companies.
On the Bombay Stock Exchange, RCOM shares closed over two percent up at 191.25 a share amid reports that the UAE firm is close to picking up 26 percent equity. Etisalat can buy a stake in RCOM only after divesting its current holding in Swan Telecom, as Indian regulations do not allow a single company to own more than than a 10 percent stake in two telecom groups, as per existing guidelines. Sources said that Etisalat is talking to RCOM to buy stake at book value of 252 a share as compared to its current market price of over 191.
Source: PTI