RIL clinches Infotel for Rs 4,800 crore

Mukesh Ambani-led Reliance Industries on Friday agreed to acquire Infotel for Rs 4,800 crore (Rs 48 billion) in a deal that values the Mahendra Nahata group internet service provider at about Rs 5,000 crore (Rs 50 billion).

As part of the deal RIL would infuse Rs 4,800 crore (Rs 48 billion) in the company as fresh equity capital to gain 95 per cent stake, the company said in a statement.

Announcement of the deal came within hours of Infotel emerging as the sole winner of broadband spectrum for the entire country for Rs 12,872 crore (Rs 128.72 billion).

This marks Mukesh Ambani group's entry into telecom sector in less than a month of he and his younger brother Anil reaching a truce by ending all the no-compete agreements to enable each other an opportunity to enter and invest in areas hitherto barred under the family settlement reached in 2005 for division of Reliance empire.