Anil Ambani Group’s Reliance Communications said it is on track to complete the sale of its mobile network assets by the end of next month.
Speaking in the context of gaining shareholder approval for the scheme, the company said: “RCOM’s asset monetization is proceeding on fast track to close by March 2018, subject to lenders’ consents and other regulatory approvals.”
Two months ago, RCom and Reliance Jio announced that the Mukesh Ambani-led company has agreed to buy an undisclosed share of Reliance Communications’ mobile network assets, including spectrum, towers, fiber, and other telecom infrastructure.
The exact quantum of assets being transferred between the two companies controlled by the brothers, and the consideration being paid, have not been disclosed yet.
Other than the announcement with Reliance Jio, RCom has not made any other announcements on asset sale involving any other of the bidders, who included Bharti Airtel and Idea Cellular.
It is, therefore, estimated that either the company has sold all the assets it put up for sale to Mukesh Ambani’s Reliance Jio, or that some of the assets remain unsold.
RCom today said once the entire asset sale program is over, it would be able to reduce its debt by Rs 25,000. It was not clear how far the deal with Reliance Jio would go in this regard.
“Post monetization, the debt and liabilities of the Company will reduce by around Rs 25,000 crore by prepayment of debts and transfer of Department of Telecommunications’ Spectrum Installments.”
“RCOM’s continuing operations will comprise stable and profitable B2B focused businesses, including Indian and Global Enterprise, Internet Data Centres and the largest private submarine cable network in the world.
“These B2B businesses are stable, capital light and have sustained and predictable annuity revenues and profits, with immense growth potential amidst relatively low competitive intensity.”