Reliance Communications Limited entered into binding Memorandum Of Understanding with Veecon Media and Television Limited, for sale of its subsidiary Reliance BIG TV
Limited (RBTV), engaged in the business of Direct to Home (DTH) services across India.
Pursuant to the transaction, the buyer will acquire the entire shareholding of RBTV with business on “as-is where-is” basis, along with all existing trade liabilities and contingent liabilities.
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, benefitting all stakeholders including lenders and shareholders of RCOM.
The transaction is in consonance with the RCOM’s stated objective to focus on B2B businesses of New RCOM.
The culmination of the transaction is subject to the requisite approvals from licensors,regulatory authorities and lenders of RCOM.