Russia’s Sistema has surfaced as the uppermost bidder for the rest of the assets of Anil Ambani-controlled Reliance Communications at an overall worth of $1.5 Billion. This information was given by 3 sources well aware with the issue. The assets include data centers and enterprise and overseas telecom business.
The bid by Sistema JFSC stands at $1.2 Billion (almost Rs 7,800 Crore) apart from the $300 Million (almost Rs 2,000 Crore) that Reliance Communications took from Sistema. The Russian firm is seeking to completely purchase out the Indian telecom company, but might have to do so in stages, claimed one of the sources cited above. Previous week, Sistema made an offer for data centers, undersea cables, and domestic enterprise business of RCom.
“Currently, the asset can even be capitalized at $2 Billion, but that cost is fast grinding down as prices are increasing,” claimed one source close to the development. This sale will be the concluding one of Anil Ambani’s relationship with telecom segment. The business clocked almost Rs 1,200 Crore of working profit when RCom previously reported its quarterly outcomes. On the other hand, now that Reliance has closed its mobile system, the abroad business is experiencing the price pressure.
“They utilized normally shared network resources and leased office space along with the services of the network,” the source claimed. Now, the rest of the business has to earn those prices, which is quick grinding down profitability, he claimed. Even some of the price of the working center comes under the abroad arm.
RCom has been attempting to enhance its operations by lowering the number of headquarters. It employed 7 offices, but has now reduced down to only 4, the source claimed. RCom did not answer to the media questions for an interview, while Sistema refused to say a word about this situation.