Hong Kong-based backhaul operator Citic Telecom is reportedly close to buying into undersea cable assets owned by Indian mobile operator Reliance Communications (RCom).
The exclusive talks to forge a US$1bn 50-50 joint venture could be just a month away…
Hong Kong-based backhaul operator Citic Telecom is reportedly close to buying into undersea cable assets owned by Indian mobile operator Reliance Communications (RCom).
The exclusive talks to forge a US$1bn 50-50 joint venture could be just a month away from being finalised, reported the Financial Times citing sources.
RCom last year dropped various plans to sell its Reliance Globalcom unit – which is now called Global Cloud Xchange – first to Bahrain’s Batelco, and then to a consortium of private equity funds led by investment firm Samena Capita.
Unlike those attempts, the Citic deal does not include the group’s voice telecoms division, added the report.
RCom is controlled by Anil Ambani, one of India’s richest men, and has been seeking to cut a debt pile that stood at Rs407.6bn (US$6.6bn) at the end of last year.
Standard Chartered is reportedly advising Citic while Rcom is working with Hong Kong-based investment bank IRG.
Global Cloud Xchange owns an undersea cable system spanning 65,000km, and claims to serve more than 2,100 enterprises, 200 carriers and 2.5 million retail customers in 163 countries across six continents.
RCom and Citic were unable to comment before the press deadline.
