Bahraini telco Batelco has confirmed that it is in talks to buy a stake in Reliance Globalcom, the enterprise business unit of Indian mobile carrier Reliance Communications.
The Times of India had reported that the two parties were in discussions, but…
Bahraini telco Batelco has confirmed that it is in talks to buy a stake in Reliance Globalcom, the enterprise business unit of Indian mobile carrier Reliance Communications.
The Times of India had reported that the two parties were in discussions, but both Batelco and RCom initially refused to comment on the report.
Later today Batelco issued a statement attributed to CEO Shaikh Mohamed bin Isa Al Khalifa which confirmed the talks were happening, but added that “there can be no certainty that this will lead to a transaction.”
Batelco is said to have valued billionaire Anil Ambani’s Reliance Globalcom business at US$1.3bn and is looking to buy a controlling stake, according to sources cited in the Times of India report, although this was not confirmed by Batelco.
An analyst at an Indian brokerage told TelecomFinance that he thought it was “50/50” whether the talks would lead to a deal. He said that RCom is in dire need of cash but had not managed to monetize its assets in the past.
As TelecomFinance has previously reported, RCom has been considering selling stakes in its subsidiaries for a while, in order to cut down its US$6.4bn debt load.
If the deal does come to fruition, this will be Batelco’s first dip back into the Indian market following its failed joint venture S Tel, which was stripped of its licence last year following the 2G auction scandal.
Indian conglomerate Siva, the other joint venture partner, agreed to pay back Batelco’s initial investment of US$175m in the fourth quarter of 2012, despite S Tel not being operational since its licence was revoked.
