Reliance Communications Signs Agreement To Sell Wireless Assets To Relince Jio
Reliance Communications Limited (RCOM) announced it has signed definitive binding agreements with Reliance Jio Infocomm Limited (RJIO) for sale of Wireless Spectrum, Tower, Fiber and Media Convergence Node (MCN) assets.
Asset Monetization Process: RCOM worked closely with all Lenders and SBI Capital Markets Limited, the advisors appointed by the Lenders, to run a competitive process for the monetisation of its valuable assets, comprising:
a) 122.4 MHz of 4G Spectrum in the 800/900/1800/2100 MHz bands
b) Over 43,000 towers, amongst the top 3 independent tower holdings in India
c) ~ 1,78,000 RKM of fibre with pan India footprint
d) 248 Media Convergence Nodes, covering ~5 Million sqft used for hosting telecom infrastructure
RJIO emerged as the highest bidder in a transparent process conducted under the supervision of a high-powered Bid Evaluation Committee, comprising experts from banking, telecom and law.
The Company expects the transactions to close in a phased manner between January and March 2018, subject to lenders’ and other applicable approvals.
The RJIO deal consideration comprises primarily of cash payment and includes the transfer of deferred spectrum instalments payable to the Department of Telecommunication (DoT).
The Company will utilise the proceeds of the monetisation of this cash deal solely for pre-payment of debt to its lenders.