GCX ‘will take to year-end’ to select buyer for subsea business

GCX ‘will take to year-end’ to select buyer for subsea business

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It will take to the end of 2018 for the future of Reliance Communications’ data centre, enterprise and subsea business to be decided.

Meanwhile the group is deciding whether its Eagle subsea project will terminate in Marseille or Sicily on its way to the Middle East, Mumbai and south-east Asia.

RCom has completed the sale of its wireless business to the unrelated Reliance Jio, said Bill Barney, CEO of the company and its subsea subsidiary, Global Cloud Xchange (GCX).

“Wireless is completely gone,” he said. The company is still reviewing two bids for GCX and the related businesses, but that is “a little more complicated as we have 30 lenders”, he said. One of the bidders owns HGC Global Communications; the other is a consortium of private equity companies. Both have bid $1.1 billion, according to Capacity’s sources.

GCX has not decided where to terminate the European end of Eagle, Barney told Capacity. “A number of parties are trying to get it. We will decide in the next month or so, but it won’t impact the cost of the project.”

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