RIL weighs $5.9 billion bid for T-mobile’s Netherlands ops
MUMBAI: Billionaire Mukesh Ambani’s Reliance Industries Ltd. is weighing a bid for Deutsche Telekom AG’S Netherlands subsidiary, according to people familiar with the matter.
The conglomerate is working with an adviser to evaluate an offer for T-mobile Netherlands BV, the people said, asking not to be identified discussing confidential information. Deutsche Telekom is seeking about €5 billion ($5.9 billion) in any sale, the people said.
Talks are ongoing, no final decision has been made and there’s no certainty Reliance will decide to proceed with a formal offer, according to the people. Deutsche Telekom declined to comment. A representative for Reliance could not immediately comment.
Deutsche Telekom is working with Morgan Stanley on the sale of the business, which has attracted interest from private equity firms including Apax Partners, Apollo Global Management Inc., BC Partners, Providence
Equity Partners and Warburg Pincus, Bloomberg News reported last month.
Buyout firms are drawn to such assets as they can gain control of underlying infrastructure, which offers steady long-term returns. In May, the Dutch telecom group Royal KPN NV said it had rejected an “unsolicited high-level approach” from investment firms EQT AB and Stonepeak Infrastructure Partners.
KPN shares dropped as much as 4.7% in Amsterdam Tuesday to a three-week low on the news Reliance was considering a bid for its competitor.
Reliance is India’s largest company by market value, with a business that spans oil refining, petrochemicals, retail and telecommunications.
A deal for T-mobile Netherlands would represent a rare buy in Europe and comes as Ambani tries to transform Reliance into a technology and e-commerce titan.