RCom likely to get ₹18,000 crore from first tranche of asset sale

Rajesh Kurup Mumbai | Updated on March 08, 2018 Published on March 08, 2018

The CCI has cleared all the proposals for RCom’s asset sale to Reliance Jio   -  INDRANIL MUKHERJEE

Debt-laden Reliance Communications (RCom) is expected to receive about ₹18,000 crore in the first tranche of asset sales to Reliance Jio Infocomm, even as it got Competition Commission of India’s (CCI) approval for the proposed sale.

The company, controlled by billionaire Anil Ambani, will get about ₹6,000 crore in the second tranche. In the first phase, RCom is offering towers, India fibre, telecom infrastructure and spectrum in the 850 MHz, 900 MHz, 1800 MHz and 2100 MHz, sources close to the development told BusinessLine.

In the second tranche, it will offer the pan-India 850 MHz and 1800 MHz spectrum, the source, who declined to be identified, said.

RCom, which was barred by an arbitration tribunal from selling its assets to RJio, also got CCI approvals for its proposed assets sale.

“The CCI has cleared all the proposals for RCom’s asset sale to RJio. The proposals cleared include RCom’s towers, India fibre, spectrum and telecom infrastructure,” a separate source said, adding that the sale is expected to be closed by this month-end “itself”.

When contacted an RCom spokesperson declined to comment. An email sent to RJio is yet to be answered.

However, the deal will depend on the final outcome of a case filed by Ericsson with an arbitration tribunal, This tribunal has barred RCom and its two units from transferring or selling any assets without its permission, a move that could delay the whole asset sale process.

The interim order, issued on March 5, was in response to a plea by telecom equipment manufacturer Ericsson. The Swedish firm, which had signed a seven-year deal in 2014 to operate and manage RCom’s nationwide network, was seeking unpaid dues.

“We intend to file an appeal against the interim order of Mumbai High Court. The claims of secured financial lenders stand higher in priority as compared to Ericsson, which is an unsecured operational vendor. Further, the sale of assets is being undertaken in pursuance of the decisions of the secured financial lenders,” an RCom spokesperson said.

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Published on March 08, 2018
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