Reliance Communication (RComm) may sell its controlling stake in DTH business to Sun Group, reports CNBC-TV18’s Kritika Saxena.
No official comment has been received from both the companies, however according to sources, the two companies are in advance stages of discussion for the stake sale. If it goes through, the deal will look at merging the DTH business of the two companies.
Sources say the valuation of the stake is around Rs 2,500 crore. The companies will take another 10-15 days before making any official announcement. A term sheet is also likely to be signed, but the deal will be a combination of cash and stocks.
The amount of Rs 2500 crore will be significant for RComm considering that the company is sitting on a debt pile of around Rs 39,000 crore.
RComm is looking at bringing down its debt by around Rs 10,000 crore this year.
In March, the company said that it was in talks with Samena Capital. It had given a timeline of May-June for the announcements and with this DTH deal coming up to around Rs 2500 crore, the company is looking at bringing down debt to save interest cost.
Overall, RComm will be able to bring down debt by around Rs 10,000 crore.