Mukesh Ambani has gifted his father a gift on his birthday, even after his death. Like a father would have wanted, Mukesh took this opportunity to bail out his younger brother from his woes by inking an “definitive agreement” between Reliance Jio Infocomm and Anil Ambani’s Reliance communications and it’s affliates for the acquisition of specified assets.
Reliance JIO Infocomm Limited will acquire wireless assets from Anil Ambani’s Reliance Communications (RCOM) and its affiliates. The assets that are a part of the deal include 122.4 MHz of 4G spectrum in the 800,900,1800,2100 MHz bands, along with over 43,000 towers, over 1.78 lakh km of laid fibre across India, and 248 media convergence nodes.
The announcement was made by Reliance Industries Limited on Thursday on the birth anniversary of the founder of the company, Sri Dhirubhai Ambani. Reliance Jio emerged as a successful bidder after a two-stage process after which a ‘definitive’ agreement was signed.
As per the statement released from JIO – “The acquisition is subject to receipt of requisitive approvals from governmental and regulatory authorities, consents from all lenders, release of all encumbrances on the said assets and other conditions precedent. The consideration is payable at completion and is subject to adjustments as specified in the agreement”
The deal closure is expected to end by March 2018 in phases subject to the lenders approvals, as mentioned also by Reliance communications.
As per the statement by Reliance communications on the deal, they added that – “ deal consideration comprises primarily of cash payment and includes transfer of deferred spectrum instalments payable to the Department of Telecommunications.” The money that is obtained from the deal will be used exclusively for “pre-payment of debts to its lenders”, as per RCOM.
Anil Ambani also added in his statement on Tuesday stating that the company had obtained full resolution of Reliance communications’ debt, reducing the debt from 25,000 crore to 6,000 crore by virtue of monetizing assets.
Nothing could have been a gift from one brother to the other on the birth anniversary of their late father, who surely would have felt happy looking from the heavens above.