Reliance Communication bondholders on Wednesday approved the Indian telco's plan to sell a large chunk of assets to rival Reliance Jio as part of its debt reduction plan…
Reliance Communication bondholders on Wednesday approved the Indian telco's plan to sell a large chunk of assets to rival Reliance Jio as part of its debt reduction plan.
RCom agreed in late December to sell 122.4 MHz of spectrum; more than 43,000 towers; 178,000 route kilometres of fibre; and 248 media convergence nodes (MCNs) to Jio. Shareholders voted in favour of the plan in February.
Following a meeting in London earlier this week, holders $300 million of RCom bonds on Wednesday gave their consent to the sale, and also approved a separate deal to offload select real estate assets.
RCom said the asset sales will enable it to make approximately 250 billion rupees (€3.12 billion) of debt repayments and spectrum payments.
Once the debt restructuring has been completed, Reliance Communications will have transformed itself into a B2B telecoms and data centre services provider and submarine network operator.
"These B2B businesses are stable, capital light and have sustained and predictable annuity revenues and profits, with immense growth potential amidst relatively low competitive intensity," RCom said, in a statement last month.