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Reliance Communications sells ethernet business for $28 mn

Reuters
RCom

Reliance Communications Ltd (RCom) has sold its ethernet business to a US-based telecommunications firm GTT Americas LLC for $28 million, it said on Friday.

Reliance Globalcom Services, a subsidiary of RCom, moved its ethernet business to a newly incorporated firm in the US called Onyx NewCo LLC and then sold this firm to GTT. 

The ethernet division had revenues of $38.97 million in the year ended 31 March 2016, roughly 1.2% of RCom's consolidated sales.

RCom will get the sale consideration of $28 million in two installments, it said.

This is in line with RCom’s strategy to dispose of assets as it aims to pare down debt.

In October, the company announced that it had signed a non-binding agreement with Canadian private equity firm Brookfield to sell its tower assets.

In September, the company announced a merger of its wireless business with Aircel in an effort to slash back on debt.

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Reliance Communications Ltd. (Formerly known as Reliance Infocomm) is engaged in providing information and communications services. It provides telecom services for mobile and fixed line telephony. It offers code division multiple access (CDMA), global system for mobile (GSM), and 3G wireless services, wireline, voice, data, video, internet services. The company also provides long distance business services such as wholesale voice, bandwidth, national and international private leased circuits, broadband internet access, audio, video and web conferencing. The company was founded in 2002 and is based in Mumbai, Maharashtra.

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