Reliance Globalcom: Batelco No, But Private Equity Maybe

April 22nd, 2013 by · 3 Comments

Reliance Communications may have reached the endgame in terms of monetizing its Globalcom division, but the game itself is still shifting. The Indian carrier acknowledged today that it is working on a deal, but it's not with Batelco anymore despite previous rumors.

No information was provided on why Batelco dropped out, however now taking the lead is Samena Capital, with 'certain other global PE funds' also in the mix. No mention of price was mentioned, but previous rumors had the buyers taking an 80% share for about $1.1B. The consortium is at an advanced stage of due diligence, and the envisioned completion timeline is still the end of May.

Samena's name comes from initials of the region it focuses on: Subcontinent, Asia, Middle East and North Africa, and according to their website they manage more than $700M. So if they're leading this deal then it's surely going to be one of their biggest holdings. I'm quite curious just what they plan to do with the asset, either organically or inorganically.

Reliance has hoped to bring in more cash for its submarine cable and other international assets than this. But over the past several years of trying to monetize the asset their hopes have been worn down by the reality of market interest. It does look like they're determined to make it happen this time, although if Batelco's dropping out is any indication they are still trying to squeeze out every last penny.

 

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Categories: Mergers and Acquisitions · Undersea cables

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3 Comments So Far


  • Anonymous says:

    They manage $700M, but are spending $1.1B in this deal? External funding or typo?

  • mhammett says:

    They manage $700M, but are spending $1.1B in this deal? External funding or typo?

    (You can delete the other one.)

    • They may not be doing the whole deal themselves. But yes, I also noted the discrepancy there – I assume outside funding is part of whatever deal might come out of this.

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