RELIANCE COMMUNICATIONS ENTERS INTO EXCLUSIVE DISCUSSIONS FOR WIRELESS BUSINESS WITH AIRCEL

by Shrutee K/DNS

Mumbai, December 22, 2015: Reliance Communications (RCOM) announced that it has entered into a 90-day exclusivity period with Maxis Communications Berhad (MCB) and Sindya Securities and Investments Private Limited, the shareholders of Aircel Limited (“Aircel”), to consider the potential combination of the Indian wireless business of RCOM and Aircel to mutually derive the expected substantial benefits of in country consolidation, including opex and capex synergies and revenue enhancement. 

The potential combination will exclude RCOM’s towers and optical fibre infrastructure, for which RCOM is proceeding with an asset sale, as announced on December 4, 2015. The discussions are non-binding in nature. Any transaction will be subject to due diligence, definitive documentation and regulatory, shareholders’ and other third party approvals. Hence, there is no certainty that any transaction will result. 

About Reliance Communications Reliance Communications Limited, founded by the late Shri Dhirubhai H Ambani (1932-2002), is the flagship company of the Reliance Group. The Reliance Group currently has a net worth in excess of Rs 91,500 crore (US $15.3 billion), cash flows of Rs 10,200 crore (US $1.7 billion) and net profit of Rs 4,700 crore (US$ 0.8 billion). Reliance Communications is India's foremost and truly integrated telecommunications service provider. The Company has a customer base of over 118 million, including over 2.6 million individual overseas retail customers. 

Reliance Communications corporate clientele includes over 39,000 Indian and multinational corporations including small and medium enterprises and over 290 global, regional and domestic carriers. Reliance Communications has established a pan-India, Next-Generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting best-in-class services spanning the entire communications value chain, covering over 21,000 cities and towns and over 400,000 villages. RCOM owns and operates the world's largest next generation IP enabled connectivity infrastructure, comprising over 280,000 kilometers of fiber optic cable systems in India, USA, Europe, the Middle-East and the Asia-Pacific region.