Reliance Communications has got into a “binding share purchase agreement” with Pantel Technologies and Veecon Media & Television for sale of its DTH arm Reliance BIG TV for an undisclosed amount.
The move is aimed at reducing debt and benefiting all stakeholders, including lenders and shareholders, of RCom, the company said in a statement.
“The transaction will help reduce the liability of unsecured creditors, benefiting all stakeholders, including lenders and shareholders of RCom. The transaction is in consonance with the stated objective to focus on B2B businesses of the new RCom,” it added.
The buyers will acquire the entire shareholding of Reliance BIG TV (RBTV) with business on an “as-is, where-is” basis, it stated further.
“The transaction ensures that all 1.2 million customers of BIG TV shall continue to enjoy uninterrupted services. It also ensures continuity of employment for approximately 500 employees of RBTV,” the telco added.
BIG TV’s DTH licence is being renewed and the required bank guarantees have already been submitted to the Ministry of Information and Broadcasting by the buyers.
Pantel Technologies is an information technology and communication devices hardware company and sells Penta T-Pad Tablet PCs. Earlier in June 2017, Pantel Technologies had acquired Den-Snapdeal TV-Shop Shopping Channel.
There are reports that China Development Bank has filed insolvency case against RCom before the National Company Law Tribunal. However, the company denied the same today.
“The company has not been served any notice of the application filed by China Development Bank with NCLT, as reported in the media,” said RCom in a clarification to the BSE.
Source: Business-Standard