Mukesh Ambani’s RIL buys broadband winner Infotel

m.today

Mumbai, June 12: Returning to the telecom arena after nearly five years, Mukesh Ambani today announced that RIL had entered into an agreement to acquire 95 per cent stake in Infotel, the only pan-India bidder to acquire 20 MHz broadband spectrum at the end of a 16-day auction.

Announcing the deal, Mukesh Ambani said: “We see this as a next wave of value creation opportunity in the wireless broadband space. We believe this will pole-vault India’s economy into the digital world at an accelerated pace while creating next generation tools that will enhance productivity and create world class consumer experiences.”

In a statement, RIL said: “RIL will invest about Rs 4,800 crore by way of subscription to fresh equity capital at par to be issued by Infotel Broadband. Post this investment, RIL will own 95 per cent of the equity and Infotel will be a subsidiary of RIL.”

It was Mukesh Ambani who built Reliance Communication brick by brick, but RCom was handed over to Anil Ambani as part of the settlement in the family in 2005.
A spokesperson for the Anil Ambani group said: “We welcome the entry of Reliance Industries into the high potential wireless broadband space.”