Reliance Communications today said it has completed the planned sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 2,000 crore, to Mukesh Ambani-backed Reliance Jio Infocomm (RJIO).
Reliance Communications today said it has completed the planned sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 2,000 crore, to Mukesh Ambani-backed Reliance Jio Infocomm (RJIO).
The transaction entailed 248 nodes covering close to 5 million sq. ft. of area, used for hosting the telecom infrastructure, all of which now stands transferred to Jio, RCom said in a statement.
"Reliance Communications Limited (RCOM) today announced the completion of the sale of its MCNs and related infrastructure assets, worth Rs 2,000 crore, to Reliance Jio Infocomm," the RCom statement said.
Earlier this month, Reliance Communications had reinstated bank guarantees worth Rs 774 crore with the telecom department ahead of the timeline set by the telecom tribunal, and had said that its Rs 25,000 crore asset sale plans are "on track".
Last year, Anil Ambani-owned Reliance Communications signed a pact with Reliance Jio for sale of wireless spectrum, tower, fiber and MCN assets - the proceeds of which were to be used to reduce debt.
The deal announced in December 2017, packed in 122.4 MHz of 4G spectrum in the 800/900/1800/2100 MHz bands, over 43,000 towers, 1,78,000 kilometres of fiber and 248 media convergence nodes. The nodes' sale concluded today represents the initial tranche of the planned, larger deal.
It was a particularly distressing time for Anil Ambani’s telecom venture RCom, which was saddled with a debt of Rs 45,000 crore and facing bankruptcy proceedings. Elder brother Mukesh Ambani’s generous bailout package of Rs 23,000 crore will save the ailing company from immediate embarrassment. The financial relief also signals the departure of RCom from the consumer telecom space, which will now be taken over by Mukesh’s Jio. This is a foregone conclusion, given the fact that RCom had stopped its consumer 2G and 3G operations in November, focusing instead on the sale of its assets.
Meanwhile. Mukesh Ambani's Reliance Industries has registered another achievement under its name. On Thursday, RIL's market cap touched Rs 8 lakh crore for the first time ever. At 1:45 pm, a share of RIL traded at Rs 1,262.50, with a gain of Rs 16 or 1.28 per cent. With this, Reliance Industries' market cap was Rs 8,00,128.29 crore, according to the stock exchange data.
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