RCom in 'advanced' talks to sell Globalcom stake
Reliance Communications said today it was in "advanced" talks to sell a stake in its network infrastructure unit to private equity funds as it seeks to pay down debt.business Updated: Apr 20, 2013 21:59 IST
India's third-biggest mobile firm RCom said on Saturday it was in "advanced" talks to sell a stake in its network infrastructure unit to private equity funds as it seeks to pay down debt.
Reliance Communications or RCom, controlled by Indian tycoon Anil Ambani, said it hopes to conclude a deal to sell a holding in Reliance Globalcom to a consortium of private equity funds led by Samena Capital by the end of May.
The consortium may buy up to 80% of Reliance Globalcom for $1 billion-$1.2 billion, the Press Trust of India quoted unnamed industry officials as saying.
Dubai-based investment firm Samena Capital and the rest of the proposed consortium are "at an advanced stage of the process" to acquire Reliance Globalcom, RCom said in a statement.
Globalcom has a large subsea telecommunications infrastructure network.
Proceeds from the sale could help RCom, Ambani's flagship firm, reduce its hefty nearly $7-billion debt load.
RCom, whose profits have come under pressure due to fierce competition in the Indian mobile phone sector, was earlier in talks with Bahrain Telecom (Batelco) to sell the unit but the two sides did not arrive at an agreement.