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Reliance goes global, buys Flag

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CIOL Bureau
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MUMBAI: Flag Telecom, provider of international wholesale network transport and communications services, has announced that the company has amalgamated with Reliance Gateway. At the special shareholders meeting held in New York where 88.8 percent of company's shareholders were represented, all of the votes cast were unanimously in favor of the proposal to amalgamate. With this positive vote, all conditions for the closing of the amalgamation were satisfied allowing the amalgamation to become effective immediately following the meeting.



Speaking after the meeting, Flag Telecom co-chairman and CEO Patrick Gallagher said, "the outcome of today's vote is highly significant for both companies. For Reliance, it marks a major step towards its vision of establishing the Reliance Group of companies as a world-class global telecommunications player. For FLAG, it brings a strong base for future growth and opportunities to drive forward its strategy while contributing to the Reliance Group vision."



"Flag brings both a unique global network footprint and a wealth of international experience, while Reliance already provides a state of the art telecommunications backbone throughout India. As a Reliance company we will continue to deliver customer value through the leverage of our existing network, supported by focused strategic investments that maintain our competitive advantage," he added.



Amit Khanna of Reliance Infocomm said, "Flag's global fiber optic network will complement our existing next generation digital network in India and enable us to serve our customers worldwide more effectively by offering end-to-end solutions. The company has an excellent reputation in the international marketplace and will retain its own brand identity going forward. By sharing the best practices, processes and experience between the Reliance Group of companies we will become the carrier of choice for all international, as well as domestic, services."



Advisors to Reliance on this transaction are Davis Polk & Wardwell, legal advisors and Deutsche Bank, financial advisors. Advisors to Flag Telecom are Akin Gump Strauss Hauer & Feld LLP, legal counsel and Houlihan Lokey Howard & Zukin (Europe) Ltd, financial advisors.



(CyberMedia News Service)

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