Mumbai: Promoters of the Anil Ambani-led Reliance Communications (RCom) will cede control to lenders who will own 51% stake in the debt-laden company.
Debt of Rs 7,000 crore will be converted into equity. Promoter holding in RCom will decline to 26% from 59%. This comes after RCom’s talks with rival Aircel to merge its wireless business with the latter fell through.
Mukesh Ambani-led Reliance Jio is likely to bid for RCom’s assets, it is learnt.
When asked about the possibility of Reliance Jio buying out 51% stake in RCom from the joint lenders’ forum-led sale process, Puneet Garg, executive director, RCom, said, “They [Jio] don’t want to deal directly but have shown interest in bidding for many of our assets in a transparent manner.” However, he did not reveal names of interested buyers citing non-disclosure agreements. “All I can say is that if they are one of the interested parties and if they emerge as the winner, their name will be disclosed.”
A mail sent to Reliance Jio regarding its interest in buying RCom and its assets remained unanswered.
RCom’s lenders have appointed SBI Capital Markets Limited as the adviser to run a competitive process meant to monetise the assets of the company.
RCom has presented a comprehensive debt resolution plan to its domestic and foreign lenders, which envisages no loan write-offs by them.
As per the plan, the company will pay off up to ₹17,000 crore of debt, by monetising assets including spectrum, towers, fibre and media convergence nodes.