Reliance Jio Infocomm Limited, a subsidiary of Reliance Industries Limited has today announced the signing of a definitive agreement to acquire assets of Reliance Communications Limited and its affiliates. Mukesh Ambani owned Reliance Jio has agreed to buy spectrum, towers and other wireless infrastructures of Anil Ambani led Reliance Communications. Also Read - Reliance Jio launches cheapest Rs 75 JioPhone recharge plan: Benefits, validity and moreAlso Read - Tips and tricks: How to get a new Jio SIM delivered at home for free
While the acquisition amount is currently unknown, Anil Ambani had previously mentioned that the assets were worth Rs 25,000 crore. The deal is said to include a cash payment and transfer of deferred spectrum installment, RCom said in a statement. RCom is said to sell assets to repay its lenders.
In June this year, lenders had invoked SDR provisions after the company presented a restructuring plan that also involved merging its wireless business with Aircel and selling a majority stake in its tower unit to Brookfield Infrastructure. The plan is said to reduce the debt of the company by Rs 39,000 crore. Thanks to the new plan, lenders gave RCom some time to repay the interest until December 2018.
Asset monetization process for RCom s assets was mandated by the lenders of RCom. The lenders had also appointed SBI Capital Markets Limited to run the process, which is supervised by an independent group of distinguished industry experts. Jio emerged as the successful bidder in the two-stage bidding process.
Reliance Jio in a statement said, “Consequent to the agreement, RJIL or its nominees will acquire assets under four categories Towers, Optic Fiber Cable Network ( OFC ), Spectrum and Media Convergence Nodes ( MCN ) from RCOM and its affiliates. These assets are strategic in nature and are expected to contribute significantly to the large-scale roll-out of wireless and Fiber to Home and Enterprise services by RJIL.”