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Friday, April 25, 2008

Reliance Comm arm buys 90% stake in British 4G co eWave World

Reliance Comm arm buys 90% stake in British 4G co eWave World
\
MUMBAI - Reliance Globalcom Ltd, a subsidiary of Reliance Communications
Ltd, has acquired 90% stake in British 4G-based wireless telephony operator
eWave World, Chief Executive Officer Punit Garg said today.

Though Garg did not disclose the amount paid by Reliance Globalcom to acquire the stake, he said the company would fund it through internal accruals.
"We have enough cash on our balance sheet to fund the acquisition. We
won't have problems in raising debt either as we are a zero-debt company
today," he said at a press conference to announce the buy.

Reliance Globalcom will invest 20 bln rupees over the next two-three years
through eWave to build and acquire 4G WiMAX networks in emerging markets of
Asia, Europe, Africa, and Latin America.

The company will launch 4G services in 50 countries by 2012, he said. "We see revenue opportunities of 40 bln rupees for Reliance Globalcom from WiMAX by 2010 by acquiring a 10-market share globally.
 


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