The Hindu Business Line : FLAG, Yipes come under Reliance Globalcom

Mumbai, Feb. 20 The Anil Ambani-controlled Reliance Communications has consolidated its overseas telecommunications operations into a new business unit, whose shares will be listed in the near future. Christened “Reliance Globalcom,” the new entity will manage the consolidated operations of Flag Telecom, Yipes enterprise Services Inc and other global businesses of RCom, said Mr Punit Garg, President of Reliance Globalcom.

Reliance Globalcom will spend about $2 billion in capital expenditure over the next three years, said Mr Garg. Subsequently, Yipes and FLAG have been re-branded, as Reliance Globalcom Services Inc and Reliance FLAG respectively.

Reliance Globalcom will have annualised start-up revenues of $1.32 billion (Rs 5,279 crore) and EBIDTA of $334 million (Rs 1,337 crore). It will target the global telecom space which has an addressable revenue potential of $285 billion (Rs 1,14,000 crore).

The consolidation process of the different business units has been initiated and it will be completed within the next 60-90 days, added Mr Garg. Reliance Globalcom will have presence in over 50 countries across the globe, said a statement.

Reliance Globalcom will go in for a probable overseas listing as it is incorporated in London and has majority revenues coming from overseas operations. However, Mr Garg did not give further details, as to when and where the listing would happen.

However, this clearly puts to rest speculation about the possible overseas listing of Flag Telecom (now Reliance Flag). “Flag is now one of Reliance Globalcom’s unit; we do not intend to list any of Globalcom’s units,” said Mr Garg. On the integration of Yipes, which was acquired by RCom in July last year, Mr Garg said that the company was on track to launch Yipes services in India by the next fiscal year.

The RCom scrip was down by 3.4 per cent to close at Rs 585.15 on the BSE today.

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