Reliance Industries is weighing a bid for Deutsche Telekom AG’s Netherlands subsidiary. The Indian conglomerate is working with an adviser to evaluate an offer for T-Mobile Netherlands BV. Deutsche Telekom is seeking about 5 billion euros ($5.9 billion) in any sale. Deliberations are ongoing, no final decision has been made and there’s no certainty Reliance will decide to proceed with a formal offer. Deutsche Telekom is working with Morgan Stanley on the sale of the business, which has attracted interest from private equity firms including Apax Partners, Apollo Global Management, BC Partners, Providence Equity Partners and Warburg Pincus, Bloomberg News reported last month. Buyout firms are drawn to such assets as they can gain control of underlying infrastructure, which offers steady long-term returns. In May, the Dutch telecom group Royal KPN NV said it had rejected an “unsolicited high-level approach” from investment firms EQT AB and Stonepeak Infrastructure Partners.
Reliance is India’s largest company by market value, with a business that spans oil refining, petrochemicals, retail, and telecommunications. A deal for T-Mobile Netherlands would represent a rare purchase in Europe and come as Ambani tries to transform Reliance from an old-economy conglomerate into a technology and e-commerce titan. Shares in Reliance have risen 5.2 per cent this year, giving it a market value of Rs 13.7 trillion ($184 billion). The stock rose as much as 1.7 per cent Tuesday, before giving up some of these gains. Deutsche Telekom entered the Dutch mobile-phone market in 2000, acquiring a stake in a venture with Belgacom SA and Tele Danmark. The business was renamed T-Mobile Netherlands in 2003 after the German carrier bought the remainder.