Mukesh Ambani's Jio to acquire brother Anil's Reliance Communications wireless assets

Steve Phelps
December 29, 2017

"RCom has signed definitive binding agreements with Jio for sale of wireless spectrum, tower, fibre and media convergence node (MCN) assets".

The company expects the transactions to close in a phased manner between January and March 2018, subject to lenders' and other applicable approvals, RCom said.

The sale marks the return of the telecom company back to the fold of Reliance Industries, which forayed into telecoms in 2002, spearheaded by elder Ambani, under the name of Reliance Infocomm Ltd.

Indian billionaire Mukesh Ambani has emerged as the savior preventing bankruptcy for his younger brother Anil Ambani's Reliance Communications.

An asset monetisation process for Reliance Communications assets was mandated by the lenders of RCom, who appointed SBI Capital Markets Limited to run the process.

Serena Williams Returns four months after child birth
The Serb has not played competitively since his quarter-final loss at Wimbledon in July because of an elbow injury. It is the first time a women's tennis match will be staged at the Abu Dhabi showpiece.

About 248 Media Convergence Nodes, covering 5 Million sq ft, used for hosting telecom infrastructure will also be a part of the deal. "These assets are strategic in nature and are expected to contribute significantly to the large-scale roll-out of wireless and fiber-to-home (FTH) and enterprise services by Jio", the elder Ambani's company said.

The company said on Tuesday that it has arrived at a new debt resolution plan with lenders that would not need any debt-to-equity conversion.

"The Jio deal consideration comprises primarily of cash payment and includes transfer of deferred spectrum instalments payable to the Department of Telecommunication (DoT)".

While the acquisition amount is now unknown, Anil Ambani had previously mentioned that the assets were worth Rs 25,000 crore.

RCom plans to reduce debt by monetising its wireless business and selling land parcels at Dhirubhai Ambani Knowledge City (DAKC). Reliance Communications is promoted by Anil Ambani. This would see RCom, having a debt of over Rs. 44,000 crores, by bringing down its mountain of debt by Rs. 25,000 crores. After completion of all transactions, the balance debt in RCom is expected to be around Rs 6,000 crore only, representing reduction of over 85% of total debt.

Other reports by

Discuss This Article