RCom shareholders approve asset sale plan
RCom says its shareholders approved its asset sale plan, under which the telecoms carrier would sell its wireless assets to Reliance Jio Infocomm
Anil Ambani-led Reliance Communications Ltd. (RCom) has got its shareholders’ approval to sell most of its wireless assets to Reliance Jio Infocomm Ltd., the company said in a statement on Friday.
RCom said that it expects to complete its asset monetization by March, a process which will reduce the company’s debt by Rs 25,000 crore.
The company’s asset monetization drive is, however, yet to get Department of Telecommunication’s (DoT) approval.
RCom had in December, 2017 finalized a debt resolution plan, which involved the sale of most of its wireless assets – including the sale of spectrum, fibre and tower network. Mukesh Ambani-owned Reliance Jio Infocomm Ltd. later emerged as the highest bidder for RCom’s assets.
The deal with Jio does not include RCom’s real estate assets. RCom is also left with some portion of its spectrum assets for which it is understood to have found other bidders.
The company’s debt stood at Rs45,000 crore at the end of October 2017.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.