Reliance Will Spend Rs 43,000 Crore To Buy Telecom Company In This Country
In a feat towards diversifying in foreign markets, Reliance Industries Ltd (RIL) is all set to acquire a controlling stake in the largest telecom operator of the Netherlands, T-Mobile Netherlands BV.
T-Mobile Netherlands is a unit of the German telecommunications company Deutsche Telekom AG, which started in the Netherlands in 2000.
Mukesh Ambani’s RIL is seeking to make a non-binding offer worth €5 billion or $5.9 billion for acquisition of a controlling stake in T-Mobile Netherlands.
The information has been provided by two people privy of this deal, requesting for anonymity.
This acquisition will mark a significant position for Reliance Industries in the European telecom market and help it de-risk the business by diversifying into other markets.
Reliance Industries to Acquire Controlling Stake in T-Mobile Netherlands
On August 10, Bloomberg reported on RIL’s ongoing work towards evaluation of an offer for T-Mobile Netherlands and informed that Deutsche Telekom was seeking a sum of €5 billion for its stake.
Asia’s richest man, Mukesh Ambaniis trying to build a global technology company that will rival Google and Amazon.com Inc., states HT.
In a feat to diversify into other markets, RIL is set to acquire a controlling stake in the telecom major, T-Mobile Netherlands BV for a non-binding offer of $5.7 billion.
The telecom operator, T-Mobile Netherlands has a user base of 5.7 million.
It is expected that the giant will make this offer within a month’s time, as the shortlisting of lenders for the same has already started. Several top foreign banks are forming a syndicate for financing the acquisition, added familiar sources.
“RIL has been evaluating the deal for over three months now, and the discussions have progressed substantially since then. Akash Ambani, who leads Reliance Jio, is personally managing the transaction.”
T-Mobile also has a significant presence in the UK. In 2010, it merged with Orange UK to form a joint venture, Everything Everywhere, in 2010, which operated the T-Mobile and Orange brands until March 2015.
In the US too, Deutsche Telekom owns a substantial stake in T-Mobile, which the second-largest wireless carrier in the country, with 104.8 million subscribers.