Reliance Communications Limited (RCOM) has entered into a binding Share Purchase Agreement with Pantel Technologies Pvt Limited and Veecon Media & 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 this transaction, the buyers will acquire the entire shareholding of RBTV with business on an “as-is, where-is” basis, along with existing trade and contingent liabilities.
Vijender Singh, Chairman & Managing Director, Pantel Technologies Pvt Ltd, said: “Pantel Technologies is a young Information Technology and Communication devices company, selling innovative Tablet PC(s) under the brand name of Penta T-Pad(s) in the Indian,South-East Asian, GCC and African markets.”
The existing DTH license of BIG TV is being renewed, and the required Bank Guarantees have already been submitted to the Ministry of Information and Broadcasting.The transaction ensures that all 1.2 million customers of BIG TV shall continue to enjoy uninterrupted services. It also ensures continuity of employment for approximately 500 employees of RBTV.
The transaction will help to reduce the liability of unsecured creditors, benefitting all stakeholders, including lenders and shareholders of RCOM.