@ksh@T 20 Report post Posted September 10, 2005 Guys a russian investor has been looking to acquire Reliance Telecom...... Is ot just a speculati9on or what Share this post Link to post Share on other sites
@ksh@T 20 Report post Posted September 11, 2005 Its Official Now>>>>>In Economic Times WILL HE? WON’T HE? Sistema in talks to buy Reliance GSM biz R Sriram MUMBAI 8 SEPTEMBER RUSSIANconglomerate AFK Sistema has approached the Anil Dhirubhai Ambani (ADAE) group with a proposal to buy Reliance Telecom, the first telecom company promoted by the younger Ambani way back in 1995. Industry sources told ET that Evgeny Novitsky, Sistema’s chairman of the board, visited Mumbai a few days ago with a team to meet ADAE officials for a possible deal. It is not known if the ADAE group is interested in selling its stake in RTL which provides cellular services to about 1.5 million consumers in central and eastern India on the GSM platform. An ADAE group spokesman declined to comment. But industry sources said that a meeting did take place between officials from both groups and that Sistema, which made a bid to buy into Chennai-based mobile service operator Aircel some time ago, is very keen on entering India. The Russian group had signed a non-binding agreement with Aircel, owned by C Sivasankaran, to buy up to 49% in a deal valued at $450 million some time earlier this year. That memorandum of understanding lapsed and it is not known if the two groups have resumed talks later. Industry sources said the company could be valued at close to $1billion due to its over one million subscriber base and the fact that there is very little debt in the company. RTL provides cellular services in Kolkata, West Bengal, Madhya Pradesh, Orissa, Assam, the Northeast, Himachal Pradesh and Bihar. The company’s subscriber base jumped 22% in April-June, higher than the 9% national cellular industry growth rate. Source ET Share this post Link to post Share on other sites
anujit 0 Report post Posted September 11, 2005 (edited) Hate to say (actually love to) But all you $500 mil investment disbelivers : TOLD YOU SO!!! He might not sell to the Russians or some Swedes.... but sell he will. Edited September 11, 2005 by anujit Share this post Link to post Share on other sites
Chirag 5 Report post Posted September 11, 2005 Two ways to look at it. Possibly he's getting some dore to pump it in his GSM biz from them, by offloading some stake. I believe, he's really looking for money to increase services. The other way to see it is, that he wants to offload the entire stake such that he can have enuf money to put it in RIM biz. And thats the reason he was actually making announcements for increasing investment in RTL last month such that it gets in the eyes of the investors! Well u really can never know wat goes on in the minds of the biz ppl! We've seen the RIL Stock grow in their time of dispute! Ppl have made big money then.... and the most beneficial ppl have been the ambanis themselves! Here again, its for them! Share this post Link to post Share on other sites
abhay 0 Report post Posted September 11, 2005 (edited) hmmm i think he should convert as many as he can users of RTL into RIM and then sell it on other thought he should not sell it to any one but keep the services limited and not let the RTL services to come into the way of RIM. RIM should be givin unristricted growth while RTL should be kept limited. like as in RTL purani company hai jab tak chalti hai chalani hai types but RINFO should be taken seriously Edited September 11, 2005 by abhay Share this post Link to post Share on other sites
SexyGurl 0 Report post Posted September 12, 2005 He can't give up the ownership of RTL (unless he sells to an Indian owner). FDI in telecom is rightnow restricted to 49% ... so that as much he can sell to the Russian company. I think he could postion RTL and RIM as different pricing points in the market .... essentially use the RTL to beat the GSM competition on pricing, while RIM continues to be a national brand. Another lollipop he could offer is free RIM-RTL (i guess, he's already doing that). Share this post Link to post Share on other sites
anujit 0 Report post Posted September 12, 2005 Isnt it 74% now up from 49%. 2ndly thanks to ADC & interconnect he can't offer free RIM to RTL! Share this post Link to post Share on other sites
@ksh@T 20 Report post Posted September 12, 2005 i also tyhink that offloading some stake would be a good option..it will surely pump xome money in Lil Ambani's Pocket Share this post Link to post Share on other sites
SexyGurl 0 Report post Posted September 12, 2005 (edited) Lil Ambani needs much more money than a Lil money. He must be hoping Infocomm gets him Rs. 1000 crore in profits this year. In Q405 (i.e. last quarter of 2004-05), it earned Rs. THREE CRORE in net profit [net of extra-ordinary items] Bharti did earn over 1000 crores, last year (Rs. 1223 crores, to be precise). I'll be surprised if they don't cross 2000 crores this year .... with the telecom market just zooming ... and Bharti doing exceptionally well. Unfortunately, infocomm being a privately held company ... we may never get to see it's financials, this year. Edited September 12, 2005 by bhutes Share this post Link to post Share on other sites
city02 63 Report post Posted September 13, 2005 I dont think 1,000 Cr is possible for RIC this financial but 100 C net profit is much more realistic depending on how conservative they get with their accounting... revenues wise they crossed a billion $ (Rs. 4,400 C) by march 05 so at least they will be beyond a billion euro (Rs 5,500 C) this fiscal. the main point is the treatment of bad debts of 2 billion $ approx. logically it should be absorbed by RIL to make it a little more fair (currently about 3/4th of the profits, cash flow, and market cap of the group is with RIL). Share this post Link to post Share on other sites
SexyGurl 0 Report post Posted September 13, 2005 (edited) I don't think RIC is suffering from any serious bad debts, as of now. It's balance sheet looks quite clean to me. (And anyway, RIC's bad debts were only due to bills not paid .... RIC did not pick the handset costs for Monsoon Hungama). And even considering the impact of Monsoon Hungama on entire Reliance group --> Near end of last year, it was reported that Reliance spent Rs. 3500 crores in all on the Monsoon Hungama (handset leases). Out of that it has already recoverd Rs. 2000 crores, as of end of last year (calendar year). The numbers sound plausible to me --> Near about 1.5 to 2 million phones were sold under the 501 scheme: (1st July, 2003, Reliance subscribers = 1.8 million. That's when monsoon hungama was launched. All these 1.8 million were mostly DAPO (or Budget 149 & 249 but with 3300 downpayment for handset). Monsoon hungama expired in Dec 2003, with reliance having nearly 5 million subscribers, but only 2 million took the 501 option .. the rest picked up other schemes, inspite of 501 being available. Cost to reliance for an LG2030 would be about Rs. 2500 per piece -- given the retail price of LG2030, after prepaid was launched. So, 3500 crores total cost of handset is not too out of the world. Actually realizing Rs. 2000 crores is again not too out of the world ... a lot of monsoon hungama, converted to prepaid, after paying Rs. 200/- per month for about 10 or 12 months. So, each ending up paying nearly 2500 for the hand set). Then, reliance is still collecting Rs. 200/- per month for the handset from those who continued postpaid (inspite of the offer to convert to prepaid). So, that would go towards recovering a good part of the outstanding 1500 crores. Maybe overall, they will escape with about 500 crores loss in all on account of Monsoon Hungama ... a rather Tiny sum, given what Monsoon Hungama gave to Reliance Info. The stated numbers of Reliance Info, or the associate companies which supported the Monsoon Hungama .. look clean to me. Their main problem is the revenues. But Rs. 5500 crore for this year is completely out of line ... Their last year revenues were 5400 crores (see RIL Annual Statement for last year). 60% growth in the year is a given .... but they could do far better. A reasonable expectation for this year's revenues lies between 8000 - 9000 crores. A 1000 crore profit-after-tax is tough but achievable. about 600 or 700 crore is more in the likely range. And 100 crore is completely out of the way ... too small. But Anil's abilities will be quite in question, if he ends up with just 600 or 700 crore PAT this year. And not only that, Infocomm ability to expand will be seriously checked if it's not moving into the 1000 crore plus range, this year. Quite understandably, they are not reducing tariffs ... esp. when there seems a pressing need in the market, to reduce both STD and R-connect rates drastically. But then, their subscribers additions continue to trail Bharti (i.e. Airtel) ... and Hutch pushing head up, during the last two months (they were pretty dead ...that Hutch ... for the first half of this year, though). Edited September 13, 2005 by bhutes Share this post Link to post Share on other sites
Ashokjp 15 Report post Posted September 13, 2005 hmm bhutes, do you handle accounts there nice tuning..... Share this post Link to post Share on other sites
RajanPERT 0 Report post Posted September 13, 2005 I think this is a technique of reliance to do something in the Share Market. Because they are intended to launched the Reliance Infocom IPO in coming months. So I think, they leak this report to the market for there benefit. This deal go or not go, depends on the moods of the market and not on the financial health of Infocom, as I think. But this is the first time, Anil Ambani use this type trick to impress the market. Previously, Mukesh Ambani uses these techniques. Let Watch and Wait! Thanks and Take Care! Share this post Link to post Share on other sites
amitbt22 2 Report post Posted September 13, 2005 Isnt it 74% now up from 49%. 2ndly thanks to ADC & interconnect he can't offer free RIM to RTL! 40706[/snapback] HE IS OFFERING "RIM2RTL" FREE RIGHT FROM THE TIME OF RIM2RIM FREE OFFER IN THERE RESPECTIVE CIRCLES Share this post Link to post Share on other sites
@ksh@T 20 Report post Posted September 19, 2005 China Mobile too makes a call on Reliance Telecom ADAE STUDYING PROPOSAL, TO TAKE DECISION AFTER VALUATION CHINA Mobile (Hong Kong) Ltd, the world’s largest mobile phone company by subscriber base, has offered to buy Reliance Telecom. It has become the second company after Russia’s AFK Sistema to show interest in the Anil Ambani-promoted company. China Mobile’s executive director and vicepresident Li Yue met senior officials of the ADAE group last week to discuss a possible deal. This comes just days after Sistema chairman Evgeny Novitsky’s meeting in the ADAE group’s Mumbai offices where he showed a similar interest. An Anil Ambani group spokesperson declined comment on the development. But industry sources said the group officials are evaluating the proposal and will take a final decision based on the valuation. Reliance Telecom provides mobile services based on the GSM platform in West Bengal, Kolkata, Bihar, Assam, the Northeast, Madhya Pradesh, Orissa and Himachal Pradesh. It has a subscriber base of about 1.5 million and a market share of 3.16% as of August 2005. RTL was the undivided Reliance group’s first foray into telecom back in 1995. China Mobile is also mainland’s leading mobile phone company. As of July 2005, it boasted 227 million subscribers, of which about 166 million were prepaid. It has been one of Greater China’s rapidly growing companies and in the first half ended June 2005 posted a 41.1% growth in subscribers, a 32.5% rise in revenue and a 27.7% jump in net profit. RTL is owned 65% by ADAE group and 35% by the special purpose vehicle Reliance Communication Ventures.The interest shown by both China Mobile and Sistema highlights the growing importance of India’s GSM-based mobile telephony market, which last year grew 55%. ------------------------------------------------------------ Whats That Guys Everybody is Ringing in For Reliance Telecom....i think that this is now the only option left with the Foreign Investors to invest in the left alone GSM company..aint it Share this post Link to post Share on other sites
SexyGurl 0 Report post Posted September 19, 2005 Government of India will beat sh*t out of poor Lil Ambani if he dreams of selling Reliance Telecom to a Chinese Company !!! Chinese company operating mobile services in Assam and North-East China is just playing games ... pretending "we're innocent MNC investors", "believe in free flow of capital" .. bla bla. No wonder you don't find Dear Chinese companies not investing in Highway Projects (Goldern Quadrilateral), in the Power Sector. They have nil strategic advantage (infact, loss .... since they'd be spending money building roads for India .... producing electricity for India). Telecom .... eh? Sinister objectives are quite obvious ! Share this post Link to post Share on other sites
abhay 0 Report post Posted September 19, 2005 MUMBAI: China Mobile (Hong Kong), the world’s largest mobile phone company by subscriber base, has also offered to buy Reliance Telecom, becoming the second company after Russia’s AFK Sistema to evince interest in the Anil Ambani-promoted company. Li Yue, China Mobile’s executive director and vice president, met with senior officials of the ADAE group last week to discuss a possible deal. This comes just days after Evgeny Novitsky, chairman of Sistema’s board had a meeting in the ADAE group’s Mumbai offices, where he showed similar interest in buying the company. An Anil Ambani group spokesperson declined to comment on the development. However, industry sources said that group officials are evaluating the proposal and will take a final call on whether to sell the company or not, based on the valuation. Reliance Telecom provides mobile services based on the GSM platform in eight telecom circles of West Bengal, Kolkata, Bihar, Assam, the North-East, Madhya Pradesh, Orissa and Himachal Pradesh. It has a user base of about 1.5m and a market share of 3.16% as of August ‘05. RTL was the undivided Reliance group’s first foray into telecom back in 1995. China Mobile is the world’s largest mobile phone company by subscribers and is also mainland China’s leading mobile phone company. As of July ‘05, it boasted 227m subscribers, of which about 166m were prepaid subscribers. It has been one of Greater China’s most rapidly-growing companies and in the first half, ended June ‘05, it posted 41.1% growth in users, a 32.5% rise in revenue and a 27.7% jump in net profit. Anil Ambani headed the venture at the time, and Reliance Telecom is now a part of his group, following the family settlement with his brother, which was announced in June this year and cleared by the Reliance Industries board in August. RTL is 65% owned by the ADAE group and 35% by the special purpose vehicle Reliance Communication Ventures. The interest evinced by both China Mobile and Sistema highlights the growing importance of India’s GSM-based mobile telephony market, which grew 55% last year. The government expects the growth to leap to 250m by ‘07. Both the foreign companies are not present in India and would obviously like to buy into an existing asset with a fairly large user base. RTL’s advantage is that it is completely debt-free and most of its subscribers are pre-paid customers, thereby reducing the risk of defaults. The company’s value has been estimated at close to $1bn but that is only likely to increase in a competitive bidding game, sources say. Industry sources believe that a deal could eventually get done at a valuation of about $1.5 bn. Share this post Link to post Share on other sites
ashoksoft 83 Report post Posted September 19, 2005 hmm ... yeah a lot of demand boss ... hope Infocomm does not fall under any other rule ... Cheers Ashok Share this post Link to post Share on other sites
Arun 795 Report post Posted September 21, 2005 China Mobile denies bid for Indian telecom company September 20, 2005 - By People's Daily Online According to a report by foreign newspaper dated Sept 19, China Mobile is considering acquiring the Indian telecom operator Reliance Infocomm. The report said China Mobile is the second company that shows interest in Reliance, the other one being Russia's AFK Sistema. However China Mobile denied the report. A spokesperson of the company said, "Senior executives of China Mobile did visit India and meet with some local operators, but they talked nothing about acquisition." Share this post Link to post Share on other sites
RajanPERT 0 Report post Posted September 21, 2005 Yes my thinking is right. Because reliance infocom want to come in the share market. So he planning to increase thier potential in the market through this type news. This is not new for Reliance Company. Thanks and Take Care! Share this post Link to post Share on other sites
ashoksoft 83 Report post Posted September 21, 2005 LOL ... this is like some research ... where one says "Drinking Tea is good for your health" and the same day someone else has a different report "Drinking tea is bad for health" Same thing ... one says "Acquisition" the other denies it ... the way news spreads Cheers Ashok Share this post Link to post Share on other sites
