RJio in talks to buy asset of debt-laden Rcom
Amir Shaikh / 21 Dec 2017
If both the parties proceed with the deal, then it would be beneficial for RIL as it will help strengthen its network coverage.
Mukesh Ambani led Reliance Industries’ subsidiary, Reliance Jio is in talks with Rcom, which is part of younger brother Anil Dhirubhai Ambani group to acquire its assets, reported a leading news outlet. The debt-laden Rcom is looking to sell its spectrum, towers and fibre business and expects to generate around Rs. 35,000 crore from the sale of its assets.
If both the parties proceed with the deal, then it would be beneficial for RIL as it will help strengthen its network coverage. On the other side, it will help Rcom to reduce its debt considerably. Total debt of Rcom is around Rs. 45,000 crore.
Besides, lenders of Rcom are likely to meet this week to take a decision on converting part of the debt owed to them into equity.
Meanwhile, the government seems to finalise a plan to allow 100 per cent FDI for telecom services through the automatic route, which attracts foreign funds without its approval. Currently, 100 per cent FDI is allowed but, 49
Moreover, the stock of both Rcom and RIL are expected to remain in focus for the next few trading sessions.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.