Reliance Communications to list global unit shortly

MUMBAI: Reliance Communications Ltd, India's second-biggest mobile operator, said on Wednesday it would combine its global operations into a separate unit whose shares would be listed shortly.

Reliance Globalcom, the new subsidiary, will comprise the company's global voice and data services, and address a market with an annual revenue potential of about $285 billion, it said.

Its units, including FLAG Telecom and Yipes, will be integrated over the next 60-90 days, and the company will have an annualised start-up revenue of $1.32 billion, said Punit Garg, president of Reliance Globalcom.

The unit will spend about $2 billion in capital expenditure over the next three years and be spun off shortly, he said. "We would definitely look at an IPO in the near future," he said, without specifying details.

Parent Reliance Communications was earlier reported to be considering a London listing for FLAG Telecom, its undersea cable unit.

There would be no separate listing of Reliance Globalcom's units, Garg said.

Reliance Communications earlier this month said it planned to sell 10 percent of its tower unit, Reliance Infratel, which media reports have indicated may raise about $1.5 billion.