Last month, India’s once-feuding Ambani brothers made their first step towards reconciliation since they carved up their father’s Reliance business in 2005. Investors and hacks all pricked up their ears; the news that Mukesh, the elder brother, was providing businesses for the younger Anil’s beleaguered operations was surely to be welcomed.
Anil Ambani’s companies have seen their market value soar since the deal was announced – shares in Reliance Communications (RCom) have almost doubled in price. But is this just a reflection on the value of brotherly love? Continue reading »
After tearing apart their father’s conglomerate, which started out producing polyester, the Ambani brothers appear to be patching things up.
After years of rumours, Mukesh Ambani’s Reliance Jio Infocomm has signed a Rs12bn ($220m) deal with Anil Ambani’s Reliance Communications to use its inter-city fibreoptic network. And this may well be just a taster for a far bigger deal to come, involving the younger brother’s telecoms towers business. Continue reading »
Shares in Reliance Communications are swinging around a fair bit at the moment. The stock dropped 2.5 per cent on Friday to reach Rs66.50 by 12.30pm, partially correcting a 5.6 per cent gain in the previous session.
One big reason: reports that Batelco, the Bahrain telecoms group, is planning to buy a stake in Reliance Globalcom. The deal makes sense – but investors can’t seem to work out if it will happen or not. Continue reading »
On the face of it seems an unlikely question. But in the the aftermath of a bungled spectrum auction, and with India’s telecoms operators facing what could be their weakest quarterly revenue performance in three years, might the worst actually be over for the beleaguered sector?
The market seems to think so. Bharti Airtel, the nation’s largest operator by revenue, has seen its stock rise by more than 10 per cent since the day 1 of the auctions last Monday, after which it was clear the contest would be exactly the type of damp squib most analysts expected. Continue reading »
As Mukesh Ambani’s $46bn-conglomerate Reliance Industries posted somewhat disappointing results on Friday, his partially estranged younger brother Anil Ambani, left, struggled with his own worries.
Just over a week after pricing the Singapore listing of its undersea cable unit, Flag Telecommunications, the younger Ambani’s debt-ridden Reliance Communications announced it was putting the IPO on hold. Continue reading »
In the second spot of good news for Indian billionaire Anil Ambani in the past two weeks, his Reliance Power received approval from Chinese regulators for $1.1bn in loans from mainland banks.
The loans, from Bank of China, China Development Bank Corp, and Export Import Bank of China, were announced in December 2010, and meant to finance the purchase of equipment for the Sasan power plant. Those loans were approved by the Reserve Bank of India last October, and finally received Chinese approval last week. Continue reading »
Shares in Reliance Communications shot up 6.59 per cent on Tuesday on news that the debt-ridden company had set an indicative price range for the Singapore listing of its undersea cable unit, Flag Telecommunications.
According to Reuters, the price range will be set at $1.09-$1.32, but the $700m-$1bn such a range could raise would do little to alleviate RCom’s $7bn debt load. Some analysts suggested that investors may simply be reacting on sentiment, rather than fundamentals – as is often the immediate case with India’s reactive markets. Continue reading »
Indian TV fans anticipating a free download of the latest episodes of Mad Men and Game of Thrones on Monday morning, hours after they aired in the US, found themselves out of luck, as a seemingly ad hoc and arbitrary clampdown on file-sharing sites continued. Continue reading »
Reports of a reconciliation – or even a business deal – between the Ambani brothers may have been premature.
It was only six months ago that reports circulated that Indian billionaire Mukesh Ambani might lease telecoms tower space from the struggling company owned by his estranged younger brother, Anil. The news was greeted as evidence that tensions were cooling between India’s most powerful siblings. But perhaps not. Continue reading »
Looks like Anil Ambani may finally be making some progress towards shoring up the roughly $7bn of debt accumulated by his flagship Reliance Communications.
RCom applied Friday to list its undersea cable company, Flag Telecom, on the Singapore Stock Exchange, two people familiar with the proceedings told beyondbrics on Monday. They said approval for the listing would likely take around a month and the company was expecting to raise $1.25bn-$1.5bn by selling a 75 per cent stake. Rcom declined to comment. Continue reading »
Compared with the embarrassment of the 2008 Indian 2G spectrum auction – which resulted in a scam that is alleged to have deprived the government of $39bn – 2010’s 3G spectrum auction was a wild, lucrative success for the government and, notably, cleanly run.
With his announcement on Wednesday that the government is intent on launching an auction of 4G spectrum sometime this year, telecoms minister Kapil Sibal seems to be hoping to for something along the lines of the latter, rather than the former. Continue reading »