Reliance Communications to sell DTH business

Reliance Communications to sell DTH business

The existing DTH licence of BIG TV shall be renewed with submission of bank guarantees to govt. According to the new pact, Veecon Media & Television will buy 100% equity stake in Reliance Big TV Ltd (RBTV) and will retain almost 500 employees of Reliance BIG TV.

Anil Ambani-led Reliance Communications Limited (RCom) today entered into binding Memorandum of Understanding (MoU) with Veecon Media and Television Limited, for sale of its subsidiary Reliance BIG TV Limited (RBTV), engaged in the business of Direct to Home (DTH) services across India. RCom didn't disclose the value of the deal but said that Veecon Media and Television will acquire the entire liabilities of the DTH business.

The transaction will help RCom pare debt, it said in a stock-market disclosure without disclosing financial details.

In December past year, RCom had inked binding agreements to sell 51% stake in its tower business to Canada-based Brookfield Infrastructure and its institutional partners for Rs11,000 crore, but the deal fell through after the company called off its merger with Aircel.

Room said the transaction would ensure uninterrupted service for the 1.2 million customers of RBTV while assuring continuity of employment for approximately 500 employees of RBTV.

The deal, however, is subject to approvals from licensors, regulatory authorities and lenders of RCom. The plan would also propose converting Rs 7,000 Cr of the existing debt into equity (51% of company's equity). Rcom had a debt of Rs 44,000 crore as on March 31, 2017.

Under the plan, lenders would not have to write off any of their loans, RCom had then stated while outlining a comprehensive debt resolution plan for its domestic and foreign lenders.