Debt-laden Reliance Communications said it will sell its Reliance BIG TV, DTH(direct-to-home) subsidiary to Veecon Media and Television.
Veecon will “acquire the Total shareholding of RBTV with business on ‘as-is-where-is’ basis, along with Total existing trade liabilities and contingent liabilities”, in a statement Reliance Communications (RCom) said.
The companies have settled into a binding memorandum of understanding to this effect, it added. According to the agreement, Veecon will retain nearly 500 employees of RBTV.
“The existing BIG TV DTH license shall be renewed with the submission of the required bank guarantees with the Ministry of Information and Broadcasting by the buyer,” the statement said.
RBTV’s 1.2 million customers will continue to enjoy uninterrupted services, it added.
“The exchange will help reduce the liability of unsecured creditors, benefiting all Partners, including money lenders and investors of RCom,” it said.
This deal is subject to requisite approvals from licensors, regulatory authorities, and lenders of RCom.
The transaction is part of RCom’s efforts to focus on B2B businesses.
RCom, which plans to close down voice call benefits from December 1, has also made a comprehensive debt resolution plan to its domestic and foreign lenders. It had earlier stated that the lenders would convert part of their debt to equity to gain 51% control of the company.
The Anil Ambani-led organization will also offer telecom tower and real estate business to pay off Rs 27,000 crore out of Rs 45,000 crore debt on its books, it had started last month.