Flag Telecom, the wholly-owned cable unit of Indian mobile operator Reliance Communications (RCom), has applied to list on the Singapore Exchange, according to reports citing sources close to the matter.
Flag, which is expected to be floated as a…
Flag Telecom, the wholly-owned cable unit of Indian mobile operator Reliance Communications (RCom), has applied to list on the Singapore Exchange, according to reports citing sources close to the matter.
Flag, which is expected to be floated as a business trust, is reportedly looking to raise up to US$1.5bn for a 75% stake in itself. But sources were quoted saying that US$1bn is a more realistic target.
In any case, this listing would allow RCom to cut its debt load, which currently stands at about US$7bn.
Listing a company as business trust usually allows for better valuations, particularly on the Singapore Exchange, compared with other structures.
Standard Chartered, DBS Group and Deutsche Bank have reportedly been hired as advisers on the process, which may take place in Q2 2012.
The mobile operator, which bought Flag for about US$210m in early 2004, could not be reached for comment before the press deadline.
