Mumbai: Shares of Reliance Communications settled 4 per cent higher following reports that Chinese firm Citic Telecom is in talks with the company to buy a significant stake in its sub-marine cable business Global Cloud Xchange.
At close of trade, shares of RCom were up 4.07 per cent at Rs 144.35 on the BSE. In intra-day, the stock gained 5.55 per cent to Rs 146.40. On the NSE, the scrip surged 4 per cent to settle at Rs 144.20. In terms of volume, 23.94 lakh shares of the company changed hands at the BSE, while over one crore shares were traded at the NSE during the day. "RCom have had discussions with various players. Citic is one of them. Whenever and with whomsoever the deal is crystallised, proceeds will be used to lower debt," an industry source said yesterday. Sources said RCom has set a target to raise over Rs 6,000 crore from sale of Global Cloud Xchange (GCX), formerly Reliance Globalcomm. RCom's net debt was Rs 40,178 crore as on March 31, 2014, according to the financial results of the company.
When contacted, an RCom spokesperson had said: "It is the policy of the company not to comment on speculation." Meanwhile, the broader market was also strong with the benchmark Sensex surging 318.95 points or 1.31 per cent to 24,693.35.
