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<\/p>\nNew Delhi\/Mumbai: Reliance Jio Infocomm Ltd appears to have emerged as the highest bidder for most of the assets put on the block by the beleaguered Anil Ambani-promoted Reliance Communications Ltd (RCom), three people aware of the development said.<\/p>\n
\u201cBids have been received for all five asset packages. Reliance Jio has emerged as the highest bidder for 3-4 of the five asset packages of Reliance Communications. It seems unlikely that any other company can outbid Reliance Jio,\u201d said one of the three people cited above.<\/p>\n
RCom shares have risen more than 37% this week, closing at Rs16.31 on Friday. <\/p>\n
A banker, the second person cited above, confirmed that Reliance Jio was the highest bidder and that the Mukesh Ambani-led firm has shown interest in buying optical fibre assets, spectrum and tower infrastructure.<\/p>\n
\u201cOthers did not match the price that Reliance Jio was willing to offer,\u201d this person added.
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The third person mentioned above also said that the company is interested in acquiring spectrum, tower assets and optic fibre for which it has a sharing or trading agreement with the Anil Ambani-promoted firm.<\/p>\n
Emails sent to RCom and Reliance Jio remained unanswered till press time.<\/p>\n
RCom\u2019s assets on the block include its real estate, fibre network, enterprise business, towers and spectrum.<\/p>\n
Reliance Industries Ltd, Reliance Jio\u2019s parent, is celebrating its 40th foundation day in Mumbai on Saturday, which also marks the beginning of a week-long celebration at the company as founder Dhirubhai Ambani\u2019s birthday falls on 28 December. Reliance Industries is expected to make announcements related to the future of the company at the event.<\/p>\n
If Reliance Jio indeed buys out RCom\u2019s assets, it would be the latest in a wave of consolidation in the telecom sector, which is in the midst of a brutal tariff war triggered by the RIL subsidiary.<\/p>\n
Faced with a mountain of debt, in June, lenders to RCom had invoked strategic debt restructuring (SDR) provisions after the company presented a restructuring plan that involved hiving off and merging its wireless business with Aircel Ltd and selling a majority stake in its tower unit to Brookfield Infrastructure. Under the plan, lenders gave the company a breather on its interest payments until December 2018.<\/p>\n
However, the merger with Aircel fell through, and on 20 October, the company presented a fresh debt repayment plan to its creditors. Under the new plan, the company envisages raising Rs27,000 crore through sales of assets including spectrum, real estate and towers. It said that a further Rs7,000 crore will be reduced after lenders convert this into equity for a 51% stake.<\/p>\n
Lenders have appointed Credit Suisse to help with bidding. SBI Capital Markets is advising the company on the sale process. Lenders have also appointed an independent committee headed by former Reserve Bank of India deputy governor S.S. Mundra to evaluate bids.<\/p>\n
\u201cThe deal with Reliance Jio is set to be announced soon and the funds received from the sale are expected to address a major portion of the Reliance Communications debt,\u201d the first person said.<\/p>\n
RCom has already sold its direct-to-home business Reliance Digital TV and announced optimization of its 2G and 3G wireless operations.<\/p>\n
Reliance Group companies have sued HT Media Ltd, Mint\u2019s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.<\/p>\n","protected":false},"excerpt":{"rendered":"
New Delhi\/Mumbai: Reliance Jio Infocomm Ltd appears to have emerged as the highest bidder for most of the assets put on the block by the beleaguered Anil Ambani-promoted Reliance Communications Ltd (RCom), three people aware of the development said. \u201cBids have been received for all five asset packages. Reliance Jio has emerged as the highest […]<\/p>\n","protected":false},"author":2,"featured_media":15165,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[312,321,315],"tags":[],"class_list":["post-15162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-india","category-tech","category-top-stories"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/15162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=15162"}],"version-history":[{"count":2,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/15162\/revisions"}],"predecessor-version":[{"id":15167,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/15162\/revisions\/15167"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/15165"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=15162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=15162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=15162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}