Mukesh’s Reliance Jio to acquire assets of Anil’s R-Com
Mukesh Ambani’s Reliance Jio (Jio) has secured the approval of the National Company Law Tribunal (NCLT) to acquire the tower and fibre assets owned by younger brother Anil Ambani’s Reliance Communications (R-Com) for Rs 3,720 crore.
Reliance Projects and Property Management Services, a subsidiary of Jio, will be acquiring Reliance Infratel (RITL) which has fibre assets of around 1.78 lakh route km and 43,540 mobile towers in the country.
RITL is the holding company for tower and fibre assets of R-Com.
Anil Ambani had resigned as chairman of R-Com in 2019 after the company and its subsidiaries was admitted under the Insolvency and Bankruptcy Code (IBC) in May 2018 for failing to pay dues of over Rs 45,000 crore. Of this, the debt of RITL is put at Rs 41,500 crore.
On Monday, the tribunal gave its approval to Jio for the acquisition of RITL. The NCLT asked Jio to deposit Rs 3,720 crore in the State Bank of India (SBI) escrow account to complete the acquisition of R-Com’s tower and fibre assets.
The Committee of Creditors had approved the resolution plan by Jio on March 4, 2020 with a 100 per cent vote.
Reliance Projects had moved an application earlier this month to the NCLT saying that due to pendency of the proceedings over the distribution of the amount, implementation of the resolution plan is delayed. It had added that the delay is also causing severe harm to the interest of Reliance Infratel, and that the lull could deteriorate the value of RITL’s assets.