New Delhi: Chinese firm Citic Telecom is in discussions with Reliance Communications (RCom) to buy a significant stake in its submarine cable business, Global Cloud Xchange, sources said. “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.
Sources said RCom has set a target to raise over Rs 6,000 crore from sale of Global Cloud Xchange (GCX), formerly Reliance Globalcomm business. RCom’s net debt was Rs 40,178 as on March 31, 2014, according to its financial results. RCom spokesperson, however, refused to comment on speculation citing his company’s policy. No Comment could be obtained from Citic Telecom.
Citic Telecom provides cloud computing and telecom service solution to companies like MPLS, IT security etc which is in sync with GCX portfolio. RCom has rebranded Reliance Globalcomm in March as Global Cloud Xchange. GCX owns the world’s largest private undersea cable system spanning 67,000 route km, which is seamlessly integrated with RCom’s two lakh route km of domestic optic fibre backbone and connecting 40 business markets worldwide.
GCX provides services to more than 230 countries and territories. RCom was previously in talks with Bahrain Telecom and later with a PE funds consortium led by Samena Capital for selling stake in the subsea cable system.
