Monday, 30th October 2017

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R-Com asset sale

Duo have pipped other interested parties such as Airtel and Varde Partners

  • Published 15.01.20, 12:47 AM
  • Updated 15.01.20, 12:47 AM
  • a min read
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Jio placed bids worth Rs 4,700-crore for tower and fibre assets of Reliance Infratel (RITL), an arm of R-Com (Shutterstock)

Reliance Jio Infocomm (Jio) and UV Asset Reconstruction Company (UVARC) have emerged as the top bidders for assets of Reliance Communications (R-Com).

While the duo have pipped other interested parties such as Airtel and Varde Partners, their combined bid value stood at close to Rs 25,000 crore. Their bids were taken up by the committee of creditors (CoC) of R-Com on Monday.

Among the two, while Jio placed bids worth Rs 4,700-crore for tower and fibre assets of Reliance Infratel (RITL), an arm of R-Com, UVARC placed bids of over Rs 16,000 crore for spectrum, real estate assets, apart from the enterprise and data centre businesses held in R-Com and Reliance Telecom Ltd (RTL).

According to the commitment given by the bidders, they have to pay 30 per cent of the proceeds of around Rs 7,500 crore within 90 days.

The payment would see 38 lenders of R-Com recovering more than 70 per cent of the total outstanding of around Rs 33,000 crore.

The COC members will have to now obtain their respective board approvals so that they can put in final votes to approve the resolution plans on January 31, ahead of the filing due in the National Company Law Tribunal (NCLT) by February 3.

R-Com is going through the corporate insolvency resolution process under the supervision of the Mumbai-bench of the NCLT.

The firm had put all of its assets for sale which included spectrum holding of 122 MHz, towers business, optical fibre network and data centres.

Yes Bank stake

Yes Bank on Tuesday said it has acquired around 30 per cent stake in a wholly-owned subsidiary of Reliance Power pursuant to invocation of pledged shares. The bank has acquired 12,73,21,500 equity shares having a nominal value of Rs 10 each per share constituting around 29.97 per cent of the post-issue paid-up share capital of Rosa Power Supply Company, a subsidiary of Reliance Power.