Reliance Communications (RCom) is in advance stages of talks with Bahrain Telecommunications (Batelco) for selling 80 per cent stake in its step-down subsidiary Reliance Globalcom for around Rs 6,000 crore.
“Reliance Communications is in advance stage of discussion with Bahrain Telecommunications. RCom is expecting Rs 5,000-6,000 crore from 80 per cent stake sale. It (deal) is expected to close by end of May,” sources close to the development said.
When contacted, an RCom spokesperson did not offer any comment on the matter.
Batelco officials could not be contacted.
Anil Ambani-led Reliance Group company, RCom is working on to retain 20 per cent stake in Reliance Globalcom, which is one of the international link that facilitates internet and other telecom services for Indian market.
Last month, RCom had said that it was in “discussions with Batelco Group” with respect to Reliance Globalcom. “At this point, there can be no certainty that this will lead to a transaction,” it had said.
RCom would use the proceeds to lower debt burden which stood at around Rs 37,360 crore as on December 31, 2012, sources said.
After jumping nearly 7 per cent during the day, shares of RCom closed up 4.52 per cent at Rs 65.85 on the BSE.
RCom recently entered into a Rs 1,200-crore agreement with Mukesh Ambani-led Reliance group firm Reliance Jio Infocomm for nationwide optic fibre network.
Sources said that RCom is also in discussions to sell stake in direct-to-home firm Reliance BigTV but no significant development is there in the deal as of now.
Recently, Reliance Globalcom upgraded its global network by integrating Hawk Cable system with its international under-sea cable and thus added capacity of 20 terabits more in the Mediterranean region.