Though Ambani brothers have parted their ways, and yet, they don’t leave each other’s hand in the time of need.
Mukesh Ambani who is India’s richest businessman right now came forward to bail out his younger brother Anil Ambani’s debt-ridden Reliance Communications (RCom) by acquiring spectrum tower, optical fiber network, and other wireless assets in a huge deal to save the business last night. The deal worth Rs 24,000-25,000 crore was made specifically on the 85th birth anniversary of their father Dhirubhai Ambani.
Company said, “RCom has signed definitive binding agreements with Jio for sale of wireless spectrum, tower, fibre and media convergence node (MCN) assets… Jio emerged as the highest bidder in a transparent process conducted under the supervision of a high-powered Bid Evaluation Committee, comprising experts from banking, telecom and law,”
The deal announced on Thursday evening indicates the exit of Anil’s RCom from the consumer telecom space. In 2005, Anil had to go through a bitter-family fight with Mukesh to receive this business in the settlement.
Anil said that after the completion of the revival process, the ‘new RCom’ would have debt of just Rs 6,000 crore, decreased from Rs 45,000 crore which was in October.
The announcement came just two days after Reliance Communications disclosed a new deal with the lenders under which nearly Rs 40,000 crore will be raised through sale of assets, turning a forthcoming takeover by the 35 local and foreign banks.