Ambani: Aiming high
Mumbai, Feb. 20: Reliance Communications (R-Com) is consolidating its global operations into a single company — Reliance Globalcom — and will float an initial public offering (IPO) of its shares shortly.
Punit Garg, president (global business) of Reliance Communications, told reporters that the business would begin with an annualised start-up revenue of $1.32 billion.
We will look for an IPO in the near future, he said without specifying a date.
Garg refused to say whether Reliance Globalcom would be listed on domestic bourses or abroad.
Observers, however, believe that the unit is likely to be listed overseas.
To enhance its presence in the overseas markets, where it is currently represented through FLAG Telecom and Yipes, the group plans to make a capital expenditure of around $2 billion over the next three years.
Garg said the proposed IPO of FLAG Telecom was unlikely to be made and that the two units were likely to be integrated over the next three months.
Reliance Globalcom will encompass a portfolio of global communications business services, including global voice, managed network, carrier ethernet, and fibre capacity businesses, into a single group. Ethernet is a protocol that links computers to a network.
In creating Reliance Globalcom, we are aligning our global communications strategies into a single vision to create one of the top five global communications companies in the world, said Anil Ambani.
Reliance Globalcom, which is being structured to serve the existing and emerging demands of its global customers, will add significant value for the shareholders of R-Com, he added.
Garg said Reliance Globalcom would target the fast growing potential in the global telecom arena with annual addressable revenue potential of $285 billion.
The unit will deliver a broad portfolio of data and voice services across various segments by leveraging FLAGs global telecom infrastructure and Yipes expertise.
Reliance Communications also announced the alignment of its subsidiaries. Yipes Enterprise Services Inc has changed its name to Reliance Globalcom Services Inc.