Mukesh Ambani-led Reliance Jio Infocomm is likely to harvest synergy gains, reduced operating expenses and higher savings in tower rentals with the acquisition of the wireless telecom assets of Reliance Communications (RCom), which surged to a 52-week intraday high on Friday.
Sources have pegged the Jio-RCom all-cash deal size at roughly Rs 24,000 crore, which will help the Anil Ambani company repay part of its Rs 45,000 crore debt. While the two companies didn't specify the deal value, analysts said Jio possibly paid a fair value for RCom's wireless infrastructure assets, which they estimate are worth between Rs 24,000 crore and Rs 29,000 crore. US brokerage Jefferies said spectrum would form the bulk of the estimated fair value at Rs 15,000 crore, with towers (Rs 7,000-9,000 crore) and optic fibre cable (Rs 3,000-5,000 crore) making up the rest. Experts see RIL-owned Jio saving on tower rentals going forward.