Batelco said to be close to $1.1bn Indian deal

Bahrain telco will reportedly buy 80% stake in Reliance Globalcom as part of overseas push

Tags: BahrainBahrain Telecommunications CompanyIndiaReliance CommunicationsReliance Globalcom ( Tel Communications
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Batelco said to be close to $1.1bn Indian deal Batelco is keen to return to the India market following affiliate S Tel’s loss of licence last year.
By  Andy Sambidge Published  April 8, 2013

India's Reliance Communications will reportedly sell an 80% stake in its subsidiary Reliance Globalcom to a consortium led by Bahrain Telecommunications Company (Batelco).

The Anil Ambani-owned company is close to a deal worth $1.1bn as part of a series of deals that the Reliance Group proposes to deal over the next couple of months, Times of India reported on Monday.

Reliance Communications, India's number-three mobile phone carrier by customers, had net debt of about $6.9bn as of December, or more than five times its annualised operating profit, making it the most-leveraged Indian phone carrier.

The agreement would be the latest overseas move by Batelco, which wants to expand abroad to offset declining domestic income.

The telco is keen to return to India, despite its former affiliate S Tel being one of eight mobile operators to lose their telecom licences last year as part of a corruption probe.

Informed sources told the paper that the deal with Batelco is expected to be in place by the end of May and the management control of Reliance Globalcom would move to the Bahrain-based company. Private equity firms are part of the consortium led by Batelco.

Reliance Globalcom operations include a fibre business under Yipes in the US, a management services business under Vanco in the UK and Flag Telecom. It provides voice, Internet and value-added services.

1903 days ago
Vinod Mehra

A win win for the two parties and its success will be closely wartched by other global operators.

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