Reliance BIG TV to be acquired by Veecon Media and Television
Anil Ambani owned Reliance Communication's subsidiary Reliance BIG TV Limited (RBTV) will be acquired by Delhi-based Veecon Media and Television Limited
Reliance Communications Limited (RCOM) led by Anil Ambani, on November 6, entered into a binding Memorandum of Understanding with Delhi-based Veecon Media and Television Limited, for its subsidiary Reliance BIG TV Limited (RBTV), engaged in the business of Direct to Home (DTH) services across India.
“Pursuant for the transaction, the buyer will acquire the entire shareholding of RBTV with business on “as-is-where” basis, along with all existing trade liabilities and contingent liabitlites,” RCOM said in a regulatory filing, today.
According to the filing, all existing 1.2 million customers of RBTV will continue to have uninterrupted services and the transaction also ensures the continuity of employment for approximately 500 RBTV employees.
RCOM also 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 transition is in consonance with the RCOM’s stated objective to focus on B2B business of New RCOM. The deal will help reduce the liability of unsecured creditors, the RCOM’s statement said.
According to reports, last month, RCom had reached a new debt repayment plan with lenders, including a pledge to raise up to Rs. 17,000 crore by selling assets.
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