Reliance Communications to list Flag Telecom on LSE

New Delhi: Reliance Communications (RComm), controlled by Anil Ambani, which is in the process of bidding for Hutch-Essar, is planning to list its undersea cable business unit Flag Telecom in London to raise over $500 million.

The company plans to dilute between 20 and 24-per cent stake in the wholly owned company through the listing on LSE, sources said.

The process of preparation for the listing would start next month. Flag Telecom provides network infrastructure and data services to telecom operators and content providers across the world.

Last month Anil Ambani had unveiled a $1.5-billion investment in Flag, designed to expand its network reach by 43 per cent to 115,000km and add extra capacity for voice calls, internet and multimedia services amid rising global demand.

The expansion will extend India''s largest internet protocol network to destinations in South East Asia, Africa, the Mediterranean and the Pacific, including links between Japan, China and the US West coast.