Posted by & filed under Company Analysis, Financial Planning.

Description: Billionaire Anil Ambani’s Reliance Communications Ltd. will cut its debt by at least $3 billion by selling its mobile-phone transmission towers, people familiar with the deal said.

Source: Bloomberg.com
 
Date: 06/27/2010

Link: http://www.bloomberg.com/news/2010-06-27/gtl-to-buy-reliance-communications-towers-to-expand-mobile-phone-network.html

Questions for discussion:

  • Summarize the transaction described in the report?
  • What were the benefits derived for each side?
  • How will cash flow be affected at Reliance?
  • Was this a “good deal” for both parties or did one side benefit more?
  • What alternatives were available to Reliance?
  • Would you have made this deal?

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