Indian mobile operator Reliance Communications (RCom) has dropped plans to sell its international backbone unit Reliance Globalcom.
Instead, Globalcom is looking to raise either equity or debt to finance its expansion projects, its newly-appointed CEO…
Indian mobile operator Reliance Communications (RCom) has dropped plans to sell its international backbone unit Reliance Globalcom.
Instead, Globalcom is looking to raise either equity or debt to finance its expansion projects, its newly-appointed CEO Bill Barney told Reuters.
In early 2013, rumours had emerged that the wireless player was looking to sell 80% of Globalcom to Bahrain’s Batelco for Rs60bn (US$1.1bn), but that discussions fell apart.
Shortly after, RCom said it was in exclusive talks with a consortium of private equity funds led by investment firm Samena Capital about the stake sale. The parties were aiming to conclude talks by May last year.
But a few months later, RCom was still reported to be in talks with an unnamed buyer to sell the subsidiary, which includes undersea cables.
The mobile giant has been seeking to pare its debt pile, which stood at Rs407.6bn (US$6.6bn) as of 31 December. Selling assets as well as a US$1bn network sharing agreement with new entrant Reliance Jio are part of this strategy. RCom and Jio-owned Reliance Industries are controlled by once-estranged brothers Anil and Mukesh Ambani, respectively.
But Barney said that rather than selling Globalcom, the company would consolidate its assets to focus more on IP and cloud services. It also wants to expand in key markets globally.
Globalcom claims to serve more than 2,100 enterprises, 200 carriers and 2.5 million retail customers in 163 countries across six continents. The business owns an undersea cable system spanning 65,000km.
