In a new development a consortium of private equity firms, led by Samena Capital, is in advanced stages of negotiations to acquire a majority stake in Reliance Globalcom.
Reliance Globalcom, a subsidiary of Anil Ambani headed Reliance Communications is the largest private submarine cable system provider with 46 cable landing station in 26 countries.
The company was in talks with Baharain’s telecom major Batelco as Batelco planned to acquire 80% of Reliance Globalcom. However the deal did not worked out and Rcom is in another attempt to dilute its share in the company.
Reliance Communications said in a stock exchange filing, “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,”
The deal is likely to conclude by May-end. Though the deal size was not confirmed, it could be $1.2 billion.
The deal will help Rcom to reduce its debt of Rs 37000 crore. But the company is very cautious as the statement also reads there is no certainty that transaction gets finalized.