Reliance Industries appeared to move forward with an interest in acquiring a controlling stake in Deutsche Telekom’s T-Mobile Netherlands, with the Indian conglomerate reportedly set to make a $5.7 billion non-binding offer.
Two sources told Hindustan Times Reliance Industries will make its offer within a month and had begun shortlisting lenders to help fund the deal, with several top banks setting-up a syndicate to partner with the Indian company.
News of Reliance Industries’ interest in T-Mobile emerged last month, with Bloomberg reporting it was evaluating the opportunity after rumours Deutsche Telekom had decided to put the unit up for sale for between $4 billion and $5 billion.
Deutsche Telekom owns a 75 per cent stake in T-Mobile, but there has been long-running speculation it would be interested in offloading the stake which ramped earlier this year, when it was reported a sales process had commenced and offers were being invited from interested parties.
Hindustan Times’ sources said Reliance Industries had been evaluating the deal for more than three months “and discussions have progressed substantially since then”.
Notably, the $5.7 billion valuation could prove considerably higher than the low end of $4 billion Deutsche Telekom sought for the Dutch unit.
Indeed, the move would give Reliance Industries, which owns a controlling stake in Jio Platforms, a considerable foothold in Europe.
Tele2 Group owns the remaining 25 per cent stake in T-Mobile and CEO Kjell Johnsen has also indicated it would be willing to sell its share.
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