Reliance Communications in talks with Citic Telecom to sell stake in Global Cloud Xchange

Reliance Communications has stated discussions with Chinese firm Citic Telecom to sell stake in Global Cloud Xchange, its subsea cable system — after failed attempts to attract Bahrain Telecom (Batelco) and PE funds consortium led by Samena Capital.

Industry sources say Reliance Communications is talking to several telecom players and Citic Telecom is one of these companies.

The debt-laden Reliance Communications is looking at offering a significant stake in its sub-marine cable business. The primary aim of the divestment is to lower Reliance Communications mounting debt. The net debt of Reliance Communications was Rs 40,178 as on March 31, 2014.

Reliance communications

Reliance Communications, which is currently in the process of reviving its CDMA business, has set a target to mobilize over Rs 6,000 crore from sale of Global Cloud Xchange (GCX), formerly Reliance Globalcomm business.

Citic Telecom provides cloud computing and telecom service solution to companies like MPLS, IT security etc which is in sync with GCX portfolio.

RCom has rebranded Reliance Globalcomm in March as Global Cloud Xchange. The company has also hired several key executives to ramp up its business.

GCX owns the world’s largest private undersea cable system spanning 67,000 route kilometers which is seamlessly integrated with RCom’s 2 lakh route kilometers of domestic optic fiber backbone and connecting 40 business markets worldwide.

GCX provides services to more than 230 countries and territories.

TelecomLead News Team