Batelco Edged Out, Samena led PE Firms Looking for Stakes in Reliance Globalcom

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

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.

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4 Comments on "Batelco Edged Out, Samena led PE Firms Looking for Stakes in Reliance Globalcom"

 

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April 21, 2013 6:00 pm 6:00 PM

Reliance Jio should buy Globalcomm. Now they have to depend on a third party company for international bandwidth.

SS
April 21, 2013 4:29 pm 4:29 PM

So RCOM is in debt, I didn’t knew that! 🙂

Saurabh
April 22, 2013 10:13 am 10:13 AM
I’m surprised to see your comment. Not only RCOM but every single telco in India or anywhere else has huge debt burden on them. Reliance has over $7.1 billion in debt as of March 31st, 2013 which is nearly Rs. 38,340 crores (taking $1=Rs.54). There is a huge interest company is incurring on this debt. Company is in bad shape and their move of selling stake always got bad response due to their condition. Their revenues are shrinking because of customers outgo and company can’t take more funds to expand their 2G/3G network. The only positive they have is, they… Read more »
SS
April 22, 2013 1:09 pm 1:09 PM

Oh, yes! RCOM and R JIO are different companies, sorry! (messed up things)

Well, telcos of india have a little more burden than other telcos of world. North American operators enjoy charging incoming calls which is very bad policy. At least India has good telco policy!

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