Reliance Communications (RCom), which announced its fibre assets sale to Reliance Jio last year today stated that it had completed the planned sale. The Anil Ambani-led company has sold the optical fibre assets worth Rs 3,000 crore to Reliance Jio. Last week, RCom announced the completion of media convergence nodes sale to Jio worth Rs 200 crore and today, it has announced the completion of fibre assets sale. RCom is now left with wireless spectrum and tower sale, which are expected to be finalised in the coming weeks. This announcement marks the wrapping-up of yet another portion of a larger deal inked between RCom and Reliance Jio in December last year, which involved the sale of wireless spectrum, tower, fibre and media convergence nodes.
RCom and Reliance Jio Deal Progressing Very Well
In all, the mega-deal packed in 122.4 MHz of 4G spectrum in the 800/900/1800/2100 MHz bands, over 43,000 towers, 1,78,000 kilometres of fibre and 248 media convergence nodes for an estimated price tag of Rs 25,000 crore.
"Reliance Communications Limited today announced the completion of the sale of its fibre assets and related infrastructure assets, worth Rs 3,000 crore, to Reliance Jio Infocomm Limited (RJIO)," Reliance Communications said in a BSE filing today, according to PTI.
RCom Will Now Look Forward to Selling Wireless Spectrum and Towers
With the conclusion of fibre monetisation deal, 1,78,000 kilometres fibre stand transferred to Jio, which is gearing up to offer ultra high-speed fixed line fibre broadband for homes and enterprises across 1,100 cities.
As mentioned, RCom had announced the completion of the sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 2,000 crore to Reliance Jio Infocomm. RCom is undergoing the debt resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC).
RCom Currently Aiming to Reduce the Debt
The debt-laden RCom had also announced that it would repay holders of USD 300 million bonds through a combination of cash and bonds of its overseas firm, as part of revised terms approved by the overseas bondholders.
The offer approved involves the bondholders receiving cash proceeds of up to USD 118 million, and USD 55 million bonds to be issued by Global Cloud Xchange Limited, a foreign subsidiary of RCom.
Reliance Communications has already reinstated bank guarantees worth Rs 774 crore with the telecom department ahead of the timeline set by the telecom tribunal, and has said that its Rs 25,000 crore asset sale plans are "on track".
RCom also plans to seek shareholders' approval to enhance the company's borrowing limits to up to Rs 50,000 crore to meet its capital requirements.
The proposal for revising the borrowing limits will be taken up along with other proposals like alterations to the articles of association of the company, and private placement of non-convertible debentures or other debt securities at the company's annual general meeting scheduled to be held on September 18, 2018.