Reliance Jio led by billionaire Mukesh Ambani will acquire mobile business assets of his younger brother Anil Ambani-owned Reliance Communications (RCom). The proposed transaction is subject to lenders’ approval and is expected to be wrapped up in phased manner between January and March 2018. Both the parties are bound by confidentiality obligations and will make further disclosures at the appropriate time.
The deal is slated to bring relief to RCom, which is reeling under a huge debt of around Rs 45,000 crore. The proceeds of of the sale will be used for the company’s debt reduction.
“Reliance Jio Infocomm limited announced signing of definitive agreement for the acquisition of specified assets of Reliance Communications limited and its affiliates,” Reliance Jio said in a statement on Thursday.
“Consequent to the agreement, Jio or its nominees will acquire assets under four categories — towers, optic fiber cable network, spectrum and media convergence nodes —from RCom and its affiliates,” the statement added.