Indian mobile operator Reliance Communications (RCom) has confirmed in a brief statement that it is considering an IPO of its cable unit, Flag Telecom, on the Singapore Exchange.
It is seeking to list the company as a business trust, which usually…
Indian mobile operator Reliance Communications (RCom) has confirmed in a brief statement that it is considering an IPO of its cable unit, Flag Telecom, on the Singapore Exchange.
It is seeking to list the company as a business trust, which usually allows for better valuations, particularly on the Singapore Exchange, compared with other structures.
Rumours of a potential IPO had been circulating for a couple of months already. A 75% stake in Flag is estimated to fetch between US$1bn and US$1.5bn, which would enable RCom to cut its US$7bn debt load.
It would also reportedly mark the biggest IPO in Asia this year.
According to Reuters citing sources close to the matter, RCom has already received ‘in principle’ approval from the stock exchange to list Flag. Formal approval is expected within the next few days.
Standard Chartered, DBS Group and Deutsche Bank have been hired as advisers on the process, it has been reported.
