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Anil Ambani's RCom looking for a strategic investor; to exit telecom business

Updated : September 27, 2018 10:00:40 IST

Debt-ridden, Reliance Communications (RCom), on Wednesday said it's looking at a strategic investor to take the company forward, adding that Anil Ambani will completely exit the telecom business, but not in a hurry.

In an interview to CNBC-TV18, Bill Barney, chief executive officer, said stake sale process will take 2-3 months minimum for firming up investors and it would take about 12 months for the deal to get closed and completed.

As of today, RCom is in talk with two prospective investors, but the number could expand, said Barney, adding that it would probably a majority stake sale.

The company, which exited the flagship wireless businesses due to financial pressures and is also selling its spectrum, is looking to sell off the enterprise-focused offerings including subsea cables, international fixed line and data centres businesses.

According to Barney, the aim is to get back to north of 50 percent gross margin business, like their peers and the focus will be on data services for next the few quarters.

“Our business is going to be about B2B, building the products of what they need here in India. To work with cloud. Most multinational companies including India companies, if they don’t have a cloud strategy would be dead. So, if you are services company and cannot take advantage of cloud, there will be a struggle. So, we can demystify it for Indian customers and make it easier for western companies around the world to come in India,” Barney added.
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