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Reliance Ind Infras denies merger news

April 13, 2009 · Filed Under Reliance Industries · Comment 


With reference to the news item appearing in a leading web-portal titled `Reliance Group trying to make Reliance Ind Infra as a full-fledged gas carrier; company`s top line to shoot up after taking up KG Gas project`, Reliance Industrial Infrastructure has clarified that there are no plans or proposals being considered by Reliance Industrial Infrastructure to merge or otherwise restructure the company with Reliance Industries or any other entity.
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No plans to merge the Reliance Industrial Infrastructure Ltd with RIL

April 12, 2009 · Filed Under Reliance Industries · Comment 


Reliance Industrial Infrastructure Ltd an infrastructure development company promoted by Mr Mukesh Ambani said that there are no plans to merge the firm with Reliance Industries or any other entity.
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Reliance and MTN decide to end talks of merger

December 17, 2008 · Filed Under Videos · Comment 

Bundeep Singh Rangar, Chairman of IndusView Advisors discusses the impact of end of merger talks between Reliance Communication and MTN on India Inc’s global ambitions with NDTV Profit

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India’s Reliance Communications plans merger with MTN

June 11, 2008 · Filed Under Reliance Comm · Comment 

Anil Ambani, India’s second-richest man, is planning a secondary listing in London for a new global telecoms giant after the planned merger of his Reliance Communications with MTN, of South Africa, The Times has learnt.

Reliance, India’s second-biggest mobile operator, is in talks with MTN on a deal to create one of the world’s ten largest telecoms companies, worth an estimated $70 billion (£35 billion) and with 116 million subscribers worldwide.

The talks began on May 26 after Bharti Airtel, India’s biggest mobile operator, dropped out of negotiations with MTN, South Africa’s largest.

Sources close to the Reliance-MTN deal said that the negotiations, which started in secret several months ago, were going well and were likely to be concluded before the end of a 45-day exclusivity period.

The combined entity would retain its listings in Johannesburg through MTN and in Bombay through Reliance, but would seek a secondary listing in London later in the year, the sources said. Mr Ambani discussed the plans with Azmi Mikati, the chief executive of the investment unit that is MTN’s second-largest shareholder, in London last week in what is believed to have been their first meeting since the talks began.

The deal would not affect the planned listing in London of Reliance Globalcom, a subsidiary of Reliance Communications, the sources said.

The Reliance-MTN deal is complicated by restrictions on foreign ownership in India and South Africa and political sensitivities in each country about which company would be dominant.

Under South African rules, buying 35 per cent of a company obliges the purchaser to make an open offer for the rest. India limits foreign ownership in the telecoms sector to 74 per cent and a purchase of 15 per cent of a company triggers a mandatory open offer for another 20 per cent.

Mr Ambani owns 66 per cent of Reliance Communications, valued at about $20 billion, and intends to exchange this under a mechanism, yet to be agreed, for a 34.9 per cent stake in MTN. The deal would represent the biggest foreign direct investment in India to date and Mr Ambani would become the single largest shareholder in the South African company.

Although the value of that MTN stake has yet to be agreed, it could constitute one of the biggest investments by an Indian company overseas, alongside Tata Steel’s $13 billion takeover of Corus last year.

The deal could involve cash as well as equity to avoid breaching the restrictions - especially on Reliance, which is already 11 per cent foreign-owned.

Mr Ambani is in talks with private equity companies and “all the major” sovereign wealth funds, which could help the funding. The sources said that Mr Ambani was pushing to become chairman of the combined entity, although that had yet to be agreed between the two sides.

Phuthuma Nhelko, the chief executive of MTN, is expected to continue to act as the executive head of the merged entity.

The sources gave no further details, but Mr Ambani is reported to be offering to buy MTN’s shares at a significant premium in exchange for management control.

India’s Economic Times reported yesterday that the two sides were negotiating the ratio for a share swap. Mr Ambani was pushing for 66 MTN shares for 100 Reliance ones, while MTN wanted 51 MTN shares for 100 Reliance shares, it said.

Face value

MTN

— MTN was launched in 1994

— It has a market value of about $38 billion and more than 68 million customers across 21 countries in Africa and the Middle East

Reliance

— Reliance Communications is valued at just under $30 billion and has 48 million subscribers

— It is the flagship company of Reliance Anil Dhirubhai Ambani Group, the industrial conglomerate run by the billionaire Anil Ambani

Source: business.timesonline.co.uk

Reliance Communications Not In Merger Talks With MTN - Source

May 29, 2008 · Filed Under Reliance Comm · Comment 

BANGALORE -(Dow Jones)- Reliance Communications Ltd. (532712.BY) is in neither merger nor buy talks with South African telecommunications major MTN Group Ltd. (MTN.JO), a person familiar with the matter told Dow Jones Newswires said Saturday.

The person was responding to a CNBC TV-18 report, citing unnamed sources, that MTN is also in talks with Reliance Communications, Bharti’s rival and the India’s second largest telecommunications company by subscribers.

Read more: http://www.smartmoney.com/breaking-news/ON/index.cfm?story=ON-20080524-000010-0445