RCom’s cable unit to list in Singapore, launch Rs7,500cr IPO
11 Apr 2012
Anil Ambani's Reliance Communications (Rcom) is likely to launch an initial public offering of about Rs7,500 crore on the Singapore Stock Exchange for its undersea cable unit Flag Telecom, the telecom company said in a filing to the Bombay Stock Exchange on Tuesday.
The company may look to sell around 75 per cent of its holding in Flag Telecom in order to get rid of some of its heavy debt burden.
"RCom is evaluating a potential IPO listing in Singapore of its subsea telecommunications infrastructure network business through a Singapore business trust," the company statement said.
The proceeds of the IPO will go to the parent RCom which has debts to the tune of Rs36,000 crore. RCom has also being looking to sell its tower business Reliance Infratel, but talks with potential buyers are stuck on valuation.
Flag Telecom has received "in principle" approval from the Singapore Stock Exchange for its share sale, which would make the $1.4 billion IPO Asia's biggest so far this year.
The unit of Reliance Communications will be listed on the Singapore exchange as a business trust and the proceeds will be used to reduce the debt of the parent.