New Delhi: The Competition Commission of India (CCI) on Thursday cleared the proposals for sale of assets of Reliance Communications Ltd (RCom) to Reliance Jio Infocomm Ltd, a person aware of the development said.
“The proposal cleared include RCom’s towers, India fiber, spectrum holdings and media convergence nodes. The total payout to RCom is likely to be to the tune of Rs18,000 crore,” the person added on condition of anonymity.
The deal appears to be a win-win for both brothers as Jio gets most of RCom’s assets, giving it more firepower in its telecom business, while the Anil Ambani-promoted firm will reduce its debt overhang substantially.
Emails sent to RCom and Reliance Jio were not answered.
Anil Ambani on 26 December, 2017 said his company had agreed to a new debt resolution plan that will see RCom sell its assets—spectrum, fibre, telecom towers and real estate other than Dhirubhai Ambani Knowledge City—and did not entail lenders and bond-holders writing off dues or converting it into equity.
Through this process, he hoped to cut RCom’s debt by Rs39,000 crore from the Rs45,000 crore it owed lenders at the end of October.
According to the deal, Jio will buy RCom’s assets which include 122.4 MHz of 4G spectrum in the 800/900/1,800/2,100 MHz bands, over 43,000 towers, 178,000 RKM (route km) of fibre with a pan-India footprint and 248 media convergence nodes covering five million sq. ft, used for hosting telecom infrastructure.
RCom is also left with around 134 MHz of spectrum assets for which it is understood to have found other bidders.
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.