The transaction ensures that all existing 1.2 million customers of Reliance BIG TV shall continue to enjoy uninterrupted services.
Reliance Communications has signed a binding MoU with Veecon Media and Television Ltd for the sale of its subsidiary Reliance BIG TV Ltd (RBTV), which offers Direct-to-Home (DTH) services across India.
Reliance Communications did not disclose the value of the transaction.
Pursuant to the transaction, the buyer will acquire the entire shareholding of RBTV with business on an “as-is where-is” basis, along with all existing trade liabilities and contingent liabilities.
The existing DTH licence of BIG TV shall be renewed with the submission of the required bank guarantees with the Ministry of Information and Broadcasting by the buyer.
The transaction ensures that all existing 1.2 million customers of RBTV shall continue to enjoy uninterrupted services. It also ensures the continuity of employment for approximately 500 employees of RBTV.
The transaction will help reduce the liability of unsecured creditors, benefiting all stakeholders, including lenders and shareholders of RCom, the company said in a statement.
The transaction is in consonance with RCom’s decision to focus on B2B businesses.
The successful culmination of the transaction is subject to obtaining requisite approvals from licensors, regulatory authorities and lenders.
Source : The Hindu