| Rel Comm to list Flag, tower biz in 6 months |
| BS Reporter / Mumbai April 30, 2007 |
| Reliance Communications is looking at unlocking value for shareholders through an array of activities including listing its wholly-owned subsidiary, Flag Telecom, and the recently spun-off tower business. It has also earmarked a capital expenditure of Rs 10,000 crore for the current financial year. Addressing the media today, Anil Ambani, chairman, Reliance Communications said: "We are looking at unlocking shareholder value through various modes like the listing of Flag Telecom and tower business or by roping in strategic investors and strategic partners or private equity majors. We will do this in the next six months." Reliance Telecom Infrastructure was spun-off into a separate entity with the tower business in oder to reduce set-up and operating costs resulting in cost efficiencies and providing greater financial flexibility. It has 12,000 towers and a networth of Rs 3,000 crore. The company is planning to set up another 8,000 towers, increasing its total number of towers to 20,000 by next year. Ambani said the expansion plans of the company would be funded through debt, |
