PE firms in talks to acquire stake in Reliance Globalcom
20 Apr 2013
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 Communications said in a filing with the stock exchanges, "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, our global communications services business unit."
Reliance Globalcom, the submarine cable arm of Reliance Communications has abandoned its talks with Bahrain Telecommunications Company (Batelco), as PE funds are reported to be offering a better price compared to an earlier offer by Bahrain Telecom and the consortium have also assured a speedy deal.
Reliance Communications, controlled by billionaire Anil Ambani, was in talks with Batelco for stake sale.
''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,'' Reliance Communications said in a stock exchange filing.
The deal, which is expected to be of the size of $1 billion to $1.2 billion, is likely to conclude by May-end.
''At this point, there can be no certainty that this will lead to a transaction. A further announcement will be made in due course, if and when appropriate,'' the statement added.