Jio's success pushed up Ambani's shares Photograph:( DNA )
Reliance Jio Infocomm (RJIL) is all set to acquire 'specified assets' from Reliance Communications (RCOM) and its affiliates.
In an announcement made earlier today, RJIL -- a subsidiary of Reliance Industries Limited -- gave out information detailing the agreement.
According to the agreement, Mukesh Ambani-led Reliance Jio will acquire mobile business assets including spectrum, mobile towers and optical fibre network of Reliance Communications.
These assets will facilitate RJIL in the large-scale roll-out of wireless and fiber, the statement noted.
Anil Ambani's RCom is reeling under debt worth whopping 45,000 crore Rupees. The deal is expected to give RCom some relief.
Reliance Jio or its nominees will acquire assets under four categories - Towers, Optic Fiber Cable Network ("OFC"), Spectrum and Media Convergence Nodes ("MCN") from RCOM and its affiliates.
Reliance Jio will acquire all the assets without any previous liabilities attached to them.
"The acquisition is subject to receipt of requisite 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 statement said.
Reliance Jio said the process to acquire assets of RCom is supervised by an independent group of distinguished industry experts and it emerged as the successful bidder in the two-stage bidding process.
"An asset monetisation process for RCOM assets was mandated by the lenders of RCOM, who appointed SBI Capital Markets Limited to run the process," the statement said.
The parties are bound by confidentiality obligations and will make further disclosures at the appropriate time.
(With inputs from agencies)