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Pvt equity funds commit $3 billion for Infocomm
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July 22, 2005 12:31 IST

Anil Ambani has secured $3bn-worth of commitments from private investors seeking a stake in Reliance [Get Quote] Infocomm ahead of a stock market listing this year that is expected to value the Indian mobile operator's equity at about $5 billion.

Citibank Private Equity, Carlyle, Deutsche Bank, CVC Ventures, Blackstone, and Temasek, the investment arm of the Singapore government, are among those that gave "in-principle commitments", banking sources said.

The pre-IPO placement of shares in Infocomm represents the last foreseeable chance to take a significant minority stake of about 5-10 per cent in a national telecom operator in one of the fastest-growing markets.

One month after the Ambani brothers, Anil and Mukesh, settled their feud over ownership of the oil-to-telecoms conglomerate, the ease with which Anil is accessing international capital to fund his side of the divided empire indicates business is returning to normal at India's most powerful company.

This will be Temasek's second attempt to acquire a stake in Infocomm. About 18 months ago it held extensive talks with the Indian mobile services company.

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