The Hindu Business Line : Anil Ambani holds talks with Infocomm honchos

THE Vice-Chairman and Managing Director of Reliance Industries, Mr Anil Ambani, visited Reliance Infocomm headquarters on Tuesday and held discussions with the heads of departments, giving indication that the settlement process between the estranged Ambani brothers is moving forward.

Reliance Infocomm, the telecom arm, is slated to go with Mr Anil Ambani in the division of the group assets between him and his elder brother, Mr Mukesh Ambani.

The younger Ambani's interactions at the Dhirubhai Ambani Knowledge Centre in Mumbai today follows a close look at the Infocomm business across the country by his management aides in the recent weeks.

The two brothers have resurrected the peace formula suggested by ICICI Bank Chairman, Mr K.V. Kamath, in conjunction with the valuation of the group assets by Mr Nimesh Kampani of JM Morgan Stanley.

In fact, the valuation of Infocomm business based on future projections has generated considerable heat.

Sources said the committee had pegged the valuation at about Rs 29,000 crore, which was perceived to be on the higher side by the Anil Ambani camp.

At least two companies that the younger Ambani is likely to inherit, Reliance Infocomm and Reliance Energy, are cash guzzlers in the medium term, raising a demand for a cash component in settlement process.

According to the Kamath formula, the service businesses such as Reliance Infocomm, Reliance Energy, and Reliance Capital will pass on to Mr Anil Ambani, while Mr Mukesh Ambani will keep the flagship Reliance Industries Ltd and IPCL.

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