In a quick turn of event, Reliance Communications (Rcom) has inked a binding Memorandum of Understanding (MoU) with Veecon Media and Television Limited, for sale of its subsidiary DTH business Reliance Digital TV or Reliance Big TV (RBTV).
Back in October 2017, RCom planned to shut down its DTH business, RBTV by the end of November 2017. The company even announce a tie-up with its competitor DTH provider TATA Sky to migrate it’s existing subscribers to Tata Sky DTH service free of cost.
However, it seems now a successful buyer has come forward to completely acquire the Reliance Big TV business from RCom. Veecon Media and Television Limited (VMTL) will acquire the entire shareholding of RBTV with business on “as-is where-is” basis, along with all existing trade and contingent liabilities.
As far as Reliance Big TV subscribers are concerned, the existing DTH license of RBTV which is set for expire on 18th November 2017 will be renewed by Veecon Media. You will be able to continue enjoying DTH service without any interruption. Veecon Media will renew the DTH license with the submission of the required bank guarantees with the Ministry of Information and Broadcasting. Veecon Media will also retain approximately 500 employees of RBTV.
The successful culmination of the transaction is subject to the requisite approvals from licensors, regulatory authorities and lenders of RCom. The selling of its DTH arm will help the debt-hit telco to reduce the liability of unsecured creditors, benefitting all stakeholders.
Earlier, RCom has announced a comprehensive debt repayment plan. Where the telco will be raising up to 17,000 crore rupees through the sale of its assets. In addition, lenders would take over 51 percent stake in RCom by converting Rs 7,000 crore of debt into equity.
Pantel Technologies Pvt Ltd has joined the Veecon Media and Television Limited to purchase the entire stake in RCom’s subsidiary Reliance BIG TV limited.
“Pursuant to this transaction, the buyers will acquire the entire shareholding of RBTV with business on an “as-is, where-is” basis,” said RCom in a press statement.