RCom may sell 50% of subsea cable business

Dylan Bushell-Embling


Reliance Communications is rumored to be in talks to sell a 50% stake in its subsea cable assets to Hong Kong's Citic Telecom, as part of plans for a 50/50 joint venture.
 
RCom is in advanced talks to sell the stake for between $500 and $600 million, the Economic Times reported, citing a person familiar with the negotiations.
 
The sale is motivated by a desire to raise funds to cut back on the operator's large debt burden, the source said.
 
RCom's subsea cable business is operated by Global Cloud Xchange. The company operates a subsea cable system with around 67,000km of fiber.
 
Global Cloud Xchange rebranded from Reliance Globalcom in March.
 
RCom's net debt passed 400 billion rupees ($6.8 billion) during the March quarter, and the operator has been trying for several years to pare down this debt with sales of stakes in its various business units.

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