RCom completes sale of fibre assets to Jio

Anil Ambani-led Reliance Communications (RCom) on Monday said it has completed the planned sale of optical fibre assets worth Rs 3,000 crore, to Mukesh Ambani-backed Reliance Jio Infocomm (RJIO).

The announcement marks the wrapping-up of yet another portion of a larger deal inked between RCom and Reliance Jio in December last year, that involved the sale of wireless spectrum, tower, fibre and media convergence nodes.

In all, the mega deal 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 fibre and 248 media convergence nodes for an estimated price tag of Rs 25,000 crore.

"Reliance Communications Limited today announced the completion of the sale of its fibre assets and related infrastructure assets, worth Rs 3,000 crore, to Reliance Jio Infocomm Limited (RJIO)," Reliance Communications said in a BSE filing on Monday.

With the conclusion of fibre monetisation deal, 1,78,000 kilometers fibre stand transferred to RJIO, which is gearing up to offer ultra high-speed fixed line fibre broadband for homes and enterprises across 1,100 cities.

Last week, RCom had announced completion of the sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 2,000 crore to Reliance Jio Infocomm.

RCom is undergoing the debt resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC).

The debt-laden RCom had also announced that it will repay holders of $300 million bonds through a combination of cash and bonds of its overseas firm, as part of revised terms approved by the overseas bondholders.

The offer approved involves the bondholders receiving cash proceeds of up to $118 million, and $55 million bonds to be issued by Global Cloud Xchange Limited, a foreign subsidiary of RCom.

Reliance Communications has already reinstated bank guarantees worth Rs 774 crore with the telecom department ahead of the timeline set by the telecom tribunal, and has said that its Rs 25,000 crore asset sale plans are "on track".

RCom also plans to seek shareholders' approval to enhance the company's borrowing limits to up to Rs 50,000 crore to meet its capital requirements.

The proposal for revising the borrowing limits will be taken up along with other proposals like alterations to the articles of association of the company, and private placement of non-convertible debentures or other debt securities at the company's annual general meeting scheduled to be held on September 18, 2018.