Our Bureau

Mumbai, March 21

The board of directors of Reliance Communication Ventures (RCoVL) has approved the issue of foreign currency convertible bonds (FCCB) for up to $500 million (over Rs 2,200 crore) or its equivalent. The overseas issue will be at a premium to the current market price of the equity shares of the company, said a statement from the company. The issue will be subject to the necessary sanctions and approvals. Earlier this month, the board approved reorganisation of the group companies of RCoVL through a share swap based on two independent valuations by KPMG and JM Morgan Stanley as well as one property valuation by Trammel Crow Meghraj Pvt Ltd by which the constituent companies have been valued at Rs 61,000 crore.

The operating companies under the RCoVL fold are Reliance Infocomm Ltd (which will soon be merged into RCoVL), Reliance Communications Infrastructure Ltd and Reliance Telecom Ltd and FLAG Telecom. These companies will become 100 per cent subsidiaries of RCoVL. The Reliance Communication Ventures scrip closed at Rs 320.45 today, gaining 40 paise over yesterday's close.

(This article was published in the Business Line print edition dated March 22, 2006)
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