Friday, December 29, 2017

Jio picks up Rcom's call

Reliance Communications has entered into an agreement to sell its wireless assets to Reliance Industries' telecom arm Reliance Jio. The transaction, which is subject to lenders' and other applicable approvals, will close in phased manner in January-March 2018.

While the two companies did not disclose the deal size, banking sources pegged the transaction value around Rs 22,000 crore.

The deal will benefit the banks which are struggling with bad loans.

The announcement comes just two days after Reliance Communications disclosed a new deal with the lenders under which nearly Rs 40,000 crore will be raised through sale of assets, averting an imminent takeover by the 35 local and foreign banks.
 Rcom has around Rs 45700 Cr debt, Rs 20,000 Cr foreign currency loans and the rest are rupee loan. 



Rcom shares closed at Rs 31.35 in yesterday's trading. The stock is up more than 130% in the last 30 days.

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