Indian operator Reliance Communications (RCom) has signed a binding share purchase agreement with Pantel Technologies and Veecon Media & Television for the sale of its subsidiary Reliance BIG TV Limited (RBTV), engaged in the business of direct-to-home (DTH) services across India. The buyers will acquire the entire shareholding of RBTV on an “as-is, where-is” basis, along with existing trade and contingent liabilities. No financial details related to the transaction have been disclosed.
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 will continue to receive uninterrupted services. It also ensures continuity of employment for 500 employees of RBTV.
RCom expects this transaction to help reduce the liability of unsecured creditors, benefitting all stakeholders, including lenders and shareholders of RCom. The completion of the transaction is subject to approvals from licensors, regulatory authorities (Ministry of Information & Broadcasting) and lenders of RCom.
