Reliance Communication Starts FLAG Tele IPO Process

Mumbai: Reliance Communications has shortlisted four merchant banks for the initial public offer of its overseas subsidiary FLAG Telecom, which operates a global fibre optic cable network. RCom will select from among Goldman Sachs, Morgan Stanley, Deutsche Bank and UBS to lead manage the IPO, said sources. RCom will divest around 10-15 per cent stake in FLAG, which will list again on London Stock Exchange. The IPO proceeds will part-fund a $1.5 billion expansion plan for FLAG that involves the addition of 50,000 kms of Next Generation Network' over the next three years. RCom is also mulling an additional landing station for FALCON in Thiruvananthapuram in Kerala that will connect the Maldives.