World VoIP NewsRCOM sees little interest in global asset saleRCOM sees little interest in global asset sale

RCOM sees little interest in global asset sale

voip, mobile phone, mobile networks
Despite having offered up its global assets for sale more than a month ago, India’s Reliance Communications (RCOM) has yet to receive much interest for a package that includes the FLAG undersea network, which owns and operates some 65,000km of undersea fibre-optic cable that is utilised for broadband operations across the world.
According to Reuters, sources close to the sale process noted that RCOM has already extended its initial late-January deadline for bids, but so far few potential purchasers have stepped forward.

According to one source Singapore Technologies Telemedia, which currently holds stakes in Singapore's StarHub and undersea cable operator Global Crossing, is considering an offer, but the company has declined to comment on the matter. Additionally, while Japanese giant NTT Corp has been linked to a possible bid, a spokesperson for the company said that this was not the case, and no offer was being considered. It is claimed that potential barriers to a sale, which is being handled by Deutsche Bank, include a lack of financial information being made available to interested parties, while there are also rumoured concerns on the debts that RCOM’s assets carry. Another likely issue is that of value; RCOM is believed to have priced the units for sale at approximately USD3 billion.

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