Reliance Communications (RCom), a major telecom operator now under insolvency proceedings, has failed to sell its non-core assets. The company has not seen any interested party for its non-core assets, which include land in Pune, Chennai and shares of Reliance Realty and Campion Properties Ltd.
RCom had told the Bombay Stock Exchange (BSE) that the Committee of Creditors had approved the sale of non-core assets. EoI (Expression of Interest) by the bidders was first invited on April 17. However, as per an ET Telecom report, there were no bidders, and thus the EoI submission deadline was extended to June 27, 2022. Again, there were no takers.
RCom had to approach the NCLT (National Company Law Tribunal) on July 20 for approval of the sale of said assets. Since the company hasn’t received any interest in the first place, there’s no point in approaching the NCLT.
Why has No One Bid for RCom Non-Core Assets?
There might have been no bids until now because there’s a big uncertainty around whether NCLT would allow the sale of these assets in the first place, and there are also questions around what hidden uncertainties these assets might be attached to.
The company was reportedly looking to sell its enterprise business as well. But for enterprises, what RCom has today is just a bulk of voice and messaging services, whereas the other telcos have much more advanced services in their portfolio. Thus, there might be no takers for RCom’s enterprises' business either.
