Ambani’s Telecom Company Jumps Most in 6 Months on Debt Cut Planby
Reliance Communications rises 7.2%, most since December
Company expects to cut debt by 75% after Aircel, tower deals
Reliance Communications Ltd., billionaire Anil Ambani’s telecommunications business, rose the most since December after saying it would pare debt by 75 percent and move all its customers to 4th-generation services.
The shares rose as much as 7.2 percent, the most intraday since Dec. 3. They traded at 49.35 rupees, up 5.1 percent, as of 2:48 p.m. in Mumbai. The company said it would pare debt after completing planned mergers with the Indian unit of Russia’s Sistema and Aircel Ltd., and after selling its tower business.
“Our discussions with Aircel are going on well and they are in very, very advanced stages of combination and we expect to make announcement with respect to Aircel merger in the month of June,” Gurdeep Singh, chief executive officer of the wireless business, said in a call with investors Tuesday. “Once the Aircel and the tower transaction both go through, which we see a high probability, we will merely be able to clear off 75 percent of the debt. ”