Reliance Communication declined 6.91% to Rs 389.50 at 15:30 IST on BSE on reports the company may partner with a middle east sovereign wealth fund and directly buy a large stake in South Africa's MTN.
The stock today hit 52-week low of Rs 381. The stock touched an high of Rs 415 so far in the day. The stock had a 52-week high of Rs 844 on 10 January 2008.
India’s second largest listed cellular services provider by sales has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5.
The current price of Rs 389.50 discounts its Q4 March 2008 annualised EPS of Rs 9.91, by a PE multiple of 39.30.
As per reports, the reason why Reliance Communication (RCom) was mulling taking large stake in MTN was to avoid any legal disputes with his elder brother Mukesh Ambani, who runs Reliance Industries. The deal may see RCom becoming single largest shareholder in MTN.
Earlier on 26 May 2008, Reliance Communications (RCom) had informed the bourses that it has entered into exclusive negotiations with MTN Group for 45 days soon after the South African giant aborted its talks with the Sunil Mittal-controlled Bharti group. The deadline will end on 8 July 2008. As part of a tie-up, Anil Ambani was likely to swap his controlling stake in Reliance Communications to become the largest shareholder in MTN.
But Reliance Industries (RIL) on 13 June 2008 claimed first right of refusal for acquiring controlling stake in RCom.
RCom clarified on 17 June 2008, that the discussions between RCom and MTN Group for a possible combination of the two firms continue. Reliance Communications (RCom) also threatened to claim damages from Reliance Industries, in case the latter choses to take legal action against RCom. It added that RIL's claim is legally and factually untenable, baseless, and misconceived.
RCom provides telecommunication services. The company provides wireless, wire line, voice, data and Internet communication services
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