RCom shareholders approve asset monetisation plan
The shareholders of Reliance Communications, in a 99.91% vote, have approved the sale of the company's assets
Reliance Communications' (RCom) shareholders have green-lit an assetmonetisation plan, that sees the company sell off spectrum, tower, fibre and telecom infrastructure.
The decision was made after the company held a postal ballot that came to an end on 15 February 2018, with 99.91% of the board voting to approve the proposal.
The company says that the sale of its assets will reduce its debt and liabilities which are currently owed to the Department of Telecommunications' Spectrum Installments, by $250 billion.
After it has settled its debts, RCom says it will continue operating its portfolio of B2B focused businesses, including Indian and global enterprises, internet data centres and what say is the largest private submarine cable network in the world. The company adds that its businesses are “stable, capital light and have sustained and predictable annuity revenues and profits, with immense growth potential amidst relatively low competitive intensity.”
The actual sale of assets is due to take place in March 2018, subject to lenders’ consents and other regulatory approvals.