Reliance Group, India’s largest business house with total revenues of US$16.8 billion, agreed to acquire FLAG Telecom Group for $207 million, representing a premium of more than 50% over the closing price of FLAG’s shares on 15-Oct-03. Reliance is a key customer on the FLAG global network. The deal requires regulatory approvals and the approval of FLAG Telecom’s shareholders.
http://www.flagtelecom.com
- In May 2003, FLAG Telecom announced plans to enhance the reach of its European network through an agreement with Verizon Global Solutions. This agreement is a key element in FLAG’s global network plan. FLAG said it would also open new POPs in Amsterdam and Frankfurt to provide seamless connectivity to its submarine cable systems: FLAG Atlantic-1 (FA-1), FLAG Europe Asia (FEA) and FLAG North Asia Loop (FNAL).
- In March 2003, FLAG Telecom announced a capacity expansion to key segments of its cable system from Western Europe to Japan through the Middle East, India, Southeast Asia and China. This upgrade will double the system’s capacity on key segments from the U.K. to the Middle East (from 10 Gbps to 20 Gbps).
- In October 2002, FLAG emerged from Chapter 11 with its network in tact and a significantly lower level of debt. Verizon originally was one of the principal shareholders in FLAG Telecom.