Reliance Communications on Friday said it has deferred its plans for initial public offering of its undersea cable unit Flag Telecom in Singapore because of prevailing global uncertainties and adverse market conditions.
"The company states that it will await supportive market conditions and easing of prevailing global uncertainties to proceed with the offering or listing at an appropriate time in the future, in order to unlock the full value of the Flag Telecom assets," RCom said in a statement.
TRcom had filed a preliminary prospectus with the Monetary Authority of Singapore of its arm Global Telecommunications Infrastructure Trust for a public listing in Singapore on July 5. The debt-laden company had expected to raise $1.5 billion ( Rs 7,700 crore), by parting with as much as 75% of the submarine cables that were held by Flag Telecom, which is a unit of Reliance Globalcom. The proceeds were to be used to retire high-cost debt.
On June 12, 2012, the Singapore Exchange Securities Trading Limited granted an "eligibility to list" to the business trust, subject to requisite conditions being satisfied. Further, on July 5, 2012, the business trust Global Telecommunications Infrastructure Trust has lodged a copy of the preliminary prospectus with the Monetary Authority of Singapore.