Reliance Communications (RCOM) is involved in talks with several groups regarding the sale of its remaining telecom assets, the Financial Times reports, citing people involved in the discussions. According to the sources, I Squared Capital and a consortium comprising TPG, Blackstone and Varde have submitted bids for the assets, which include RCOM’s international submarine cable network, data centres and fixed line infrastructure. Both bids reportedly valued the assets at around USD1.1 billion. I Squared Capital purchased Hong Kong fixed line business HGC last year from CK Hutchison Holdings and intends to use the former Hutch assets along with RCOM’s systems to create a new India and China-focused data centre company, one of the sources was quoted as saying. The consortium, meanwhile, is primarily interested in RCOM’s subsea networks – currently operating under the Global Cloud Xchange brand.
If completed the sale would mark the debt-laden company’s exit from India’s telecoms industry, after a planned recovery programme last year fell through. RCOM closed down its consumer mobile business in December 2017 and agreed to sell its spectrum, towers and fibre assets to Reliance Jio Infocomm (Jio) the same month, although the closure of the transaction was delayed by a number of legal challenges.