RCom shares up nearly 35%

The stock price of Reliance Communications (RCom) shot up by over 35% on Wednesday, possibly triggered by a joint lenders’ forum meeting scheduled for Thursday. The forum is expected to discuss the bids it has received for sale of the company’s assets.  The joint lenders, led by State Bank of India, need to recover a part of the over Rs 40,000 crore (which include interest) it has lent to the company. However, one of the lenders, China Development Bank (which had lent $1.3 billion), had recently moved the National Company Law Tribunal (NCLT) to launch insolvency proceeding against RCom. In a hearing on December 18, NCLT adjourned the insolvency petition filed earlier by China Development Bank and Ericsson to January 5. The assets which have been put on sale include towers, fibre (inter and intracity), real estate, spectrum, and international business, which include undersea cable, amongst others.

Another development which help RCom share is that Reliance Jio has emerged the front-runner to acquire the assets of debt-ridden Reliance Communications (RCom). RCom has put its spectrum, towers and fibre on the block. If the company’s asset monetisation plans fructify, it would be worth a total of Rs. 35,000 crore. “RJio is leading the talks to acquire all assets RCom intends to sell, while a number of Private Equity (PE) firms and other strategic investors are also in the fray. The company is also in talks with foreign lenders for co-development of its Dhirubhai Ambani Knowledge City (DAKC) campus in Navi Mumbai,” a source close to the development told BusinessLine.

Filed in: DoT, Mobile Services, Reliance Communication, Reliance Jio, Stock Market, Telecom News, Telecom Operators Tags: , , , ,

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