Mukesh Ambani's Reliance Jio buying brother Anil's RCom wireless assets
Jio announced it has signed a definitive agreement for the acquisition; RCom's mobile business assets comprise cellular towers, spectrum, and optical-fiber network.
This incidentally came on the 85th birth-anniversary of their father and Reliance founder, Dhirubhai Ambani.
Reliance Jio to acquire Reliance Communications' telecom assets
Reliance Jio, the highest bidder
In a press release, Anil Ambani's Reliance Communications has stated: "RJIO emerged as the highest bidder in a transparent process conducted under the supervision of a high-powered Bid Evaluation Committee, comprising experts from banking, telecom, and law."
Assets to contribute significantly to Jio's services
RCom's deal with Jio would bring a major relief to the Anil Ambani-owned telco enabling it to reduce the debt. Earlier, Anil Ambani said that RCom would sell its telecom assets to generate Rs. 25,000cr.
Reliance Jio stated, "These assets are strategic in nature and are expected to contribute significantly to the large-scale roll-out of wireless and Fiber-to-Home and Enterprise services by RJIL."
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RCom asset monetization mandated by lenders
Reliance Jio said, "An asset monetization process for RCom assets was mandated by the lenders of RCOM, who appointed SBI Capital Markets Limited to run the process." It added an independent group of "distinguished industry experts" is supervising the process of acquiring RCom assets.
Deal value not yet disclosed by parties
Jio would acquire assets from RCom under four categories: towers, spectrum, optic fiber cable network, and media convergence nodes.
The Mukesh Ambani-owned telco said the assets would be acquired without any liabilities attached to them.
RCom said the deal would close in a phased manner between Jan-Mar'18.
The value of the transaction, however, wasn't revealed as the parties are "bound by confidentiality obligations."
Consideration payable at completion, subject to approvals
Reliance Jio stated: "The acquisition is subject to receipt of requisite approvals from governmental and regulatory authorities, consents from all lenders, release of all encumbrances...and other conditions precedent. The consideration is payable at completion and is subject to adjustments as specified in the agreement."
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