Batelco-Reliance deal likely in May: Report
Mumbai, April 8, 2013
India's Reliance Communications is likely to seal a deal to sell an 80 per cent stake in its subsidiary Reliance Globalcom to a consortium led by Bahrain Telecommunications Company (Batelco)
by May end, said a report.
The deal will be worth around Rs 6,000 crores ($1.093 billion), said the Times of India report.
Reliance Globalcom is a global communications service provider.
However, contacted by TradeArabia, a Batelco spokesperson said: “As we have informed the press in the past, there can be no certainty that any interest we expressed to Reliance Group will lead to a transaction. A further announcement will be made in due course if appropriate."
Reliance Group officials also declined comment, said the Times report.
The report said Reliance Communications will retain a 20 per cent share in the company for the first year, following which it has the option to sell that portion of the equity as well. Following the deal, the Reliance Group would remain in the company only as an investor.
It quoted informed sources as saying that the management control of Reliance Globalcom would move to the Bahrain-based company after the deal. Private equity firms are part of the consortium led by Batelco, it said. - TradeArabia News Service