RCOM to sell 80% stake in submarine unit

Indian telco Reliance Communications (RCOM) is close to selling an 80% stake in its submarine cable arm Reliance Globalcom to a consortium led by Bahrain Telecommunications Company (Batelco) for INR60 billion (USD1.09 billion), the Times of India reports without giving its sources. The deal will see RCOM retain a 20% stake in the unit, with an option to dispose of the equity at a later date. An agreement is expected to be in place by late May. A further, unrelated deal will see RCOM sell off its DTH satellite TV business to Sun Group for INR20 billion. As previously noted by CommsUpdate, RCOM has long sought to reduce its substantial debt burden through the sale of Globalcom and previously abandoned plans to launch an initial public offering (IPO) for the unit in July 2012 after failing to attract enough interest from investors.