RCom Allots 10% Equity Worth Rs. 415 Crore to Sistema Shyam Teleservices, Brings Down Promoter Group Shareholding

Follow Us

Reliance Communications has allotted 10% or 27.65 crore shares worth Rs 415 crore to Sistema Shyam Teleservices, which resulted in a decline of 5.92% points to 53.08% in RCom's promoter group shareholding, the Anil Ambani-led telco said in a latest regulatory filing.

nokia-6-3

The RCom-SSTL merger was finally approved by the telecom department last month. After the completion, RCom has acquired the entire telecom business of SSTL including its licences which bring along 30 MHz of spectrum in 800 MHz and 850 MHz bands. Following the completion, RCom is now working to shut down its loss-making wireless telephony business by December 30.

RCom had previously said that it will now focus on 4G internet services. It will use SSTL's 30 MHz of spectrum in 800 MHz and 850 MHz band to push its 4G services in India.

A PTI report said that the Anil Ambani-led telco will have the liability to pay the DoT instalments for SSTL's spectrum, amounting to Rs 390 crore per annum for the next 8 years.

RCom is currently undergoing strategic debt restructuring (SDR). It had last month presented a zero write-off plan to lenders under which banks can convert some its debt and take a 51% stake in the telecom company. The telco currently has a debt worth Rs 44,000 crore.

The telco said that several telcos and PR funds are interested in its tower unit and Indian fiber assets. Reports said that Mukesh Ambani-led Reliance Jio, Indus Towers, ATC, Bharti Infratel, Brookfield Infrastructure, Sistema JSFC, Tillman Global Holdings, TPG Capital, Carlyle Group, I-Squared Capital and Gateway Partners have shown interest to buy RCom’s tower unit.

Reliance Jio, however, is eyeing fiber assets of RCom in India to support its soon-to-be-launched wireline broadband services. RCom’s domestic fibre assets are valued at roughly Rs 4,000 crore, its executive director, Punit Garg said recently. The telco has around 1.78 lakh route kms of domestic fibre assets.

Recent Comments

SUBSCRIBE TO OUR NEWSLETTER

Subscribe
Notify of
guest
16 Comments
newest
oldest most voted
Inline Feedbacks
View all comments