RCom inks deal with Veecon Media to sell DTH business
As per news source, Reliance Communications (RCom) has signed an agreement with Veecon Media and Television Limited, for sale of its subsidiary Reliance BIG TV Limited (RBTV). It is the Direct To Home (DTH) services across India.
The news source also reveals that the buyer will acquire the entire shareholding of RBTV with business on “as-is where-is” basis. The buyer will also take over the all existing trade liabilities and contingent liabilities.
This move is in line with RCom’s decision to concentrate on B2B business.
RCom said that the existing DTH license of BIG TV shall be renewed with the submission of the required bank guarantees with the Ministry of Information and Broadcasting by the buyer.
The agreement makes sure that RBTV’s 1.2 million customers shall enjoy uninterrupted services and also the continuity of employment of 500 employees.
This transaction will help the company to reduce the liability of unsecured creditors, benefiting all stakeholders, including lenders and shareholders of RCom.
The successful culmination of the transaction is subject to obtaining requisite approvals from licensors, regulatory authorities and lenders.
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