1. Mukesh Ambani’s Reliance Jio to buy younger brother Anil’s troubled RCom’s towers, spectrum

Mukesh Ambani’s Reliance Jio to buy younger brother Anil’s troubled RCom’s towers, spectrum

Mukesh Ambani's Reliance Jio has finally sealed the deal with younger brother Anil Ambani to purchase troubled RCom's towers and fibre.

By: | Updated: December 28, 2017 7:15 PM
Mukesh Ambani’s Reliance Jio has finally sealed the deal with younger brother Anil Ambani to purchase troubled RCom’s towers and fibre. (Image: Reuters)

Mukesh Ambani’s Reliance Jio has finally sealed the deal with younger brother Anil Ambani to purchase troubled RCom’s towers and fibre after the company announced asset monetisation plan on Tuesday. RCom on Thursday said that it has signed a definitive agreement with Reliance Jio for sale of towers, MCNs and fibre. The company will sell 4G services and 43,000 towers to Jio.

RCom had announced reducing its debt by monetising the assets of its wireless business. Anil Ambani debt recast plan came to revive RCom came as a rescue to the company which was facing the threat of insolvency as it has defaulted on US dollar bonds and has failed to clear dues to its domestic and foreign lenders. The total debt of RCom is Rs 45,000 crore.

Shares of RCom have more than doubled in 6 days of trading. The share of RCom which emerged as a wealth destroyer and was on a continuous downslide from January 2016 has regained partially after Anil Ambani presented a revival plan on Tuesday to pull up the company from heavy debt burden. The stock of Reliance Communications surged as much as 110% to Rs 26.85 in a 6-day period from 19 December to 27 December.

RCom is reeling under a total debt of Rs 45,000 crore. Of this, Rs 25,000 crore is domestic debt and remaining Rs 20,000 crore is in the form of foreign loans and bonds. RCom classified Rs 22,550 crore of borrowings as non-current liabilities.  RCom posted its first full-year loss of Rs 1,285 crore since its inception for the year ended March 31, 2017.

In June this year, RCom got a seven-month breather from its lenders as part of a strategic debt restructuring (SDR) scheme. RCom said it would repay its Rs 25,000 crore debt from two merger deals with Aircel and Brookfield of Rs 14,000 crore and Rs 11,000 crore respectively, both failed to take-off. Bloomberg called it “summer sale”.

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  1. G
    guruprasad k s
    Dec 29, 2017 at 9:18 am
    reliance jio buying rcom towers and fibre its a good news for us because. Indian brothers are uniting and Indian jio network become more strong. Jio helped the people lot. showed other networks Airtel, Idea,Vodofone how they were looting money from people. All the best Jio
    Reply

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