Advertisement

HindustanTimes Fri,01 Aug 2014

Batelco, RCOM cable biz deal falls through

HT Correspondent, Hindustan Times  New Delhi, April 21, 2013
First Published: 23:04 IST(21/4/2013) | Last Updated: 23:05 IST(21/4/2013)

Talks between Bahrain-based Batelco and Anil Ambani-led Reliance Communications (RCOM) for selling the latter’s international undersea cable business have fallen through.

Advertisement

RCOM informed the stock exchanges on Saturday that it was no loner in discussions with Batelco for selling equity in Reliance Globalcom Ltd, its global communications service business unit.

In March, the company had informed stock exchanges that it was in discussions with a Batelco-led consortium of investors, to sell a stake in Reliance
Globalcom. The company expected that it would be valued at close to $1 billion, said sources.

RCOM’s letter to the National Stock Exchange, however, states that “Samena Capital, in a proposed consortium with certain other global PE funds, is at an advanced stage of the process of due diligence and completion of definitive documents in relation to the acquisition of Reliance Globalcom Ltd. The intended time line for completion is end of May 2013.”

The deal is important for RCOM as it is currently under a debt of R37,000 crore. It recently announced an agreement for leasing of its optical fibre cable network to Mukesh Ambani-led Reliance Jio Infocomm. It is likely to announce a similar deal for tower business with RJI.


Advertisement
more from Business

Argentine markets fall post-default, NY hearing on Friday

Argentina's bond and stock markets and peso currency dropped on Thursday after Latin America's No. 3 economy defaulted for the second time in 12 years following the collapse of last-ditch talks with holdout creditors.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved