RCOM may sell DTH business to Sun Group Reliance Communication (RCoM) is likely to sell its DTH business, Reliance Digital TV to the Sun Group for about Rs.2,500 crore. Presently the discussions are on and will be finalized by the end of the month. Reliance Digital TV currently has about six million subscribers, while Sun Direct has 8.5 million DTH subscribers and has a strong base in the southern states of the country. RCoM has a debt of around Rs.37,000 crore on its book and the company is looking at options to reduce its debt burden by monetising its assets. The group was in talks to sell a stake in step down subsidiary - Reliance Globalcom. In recent months, the group has announced two major deals for leasing infrastructure to Reliance Jio Infocomm. On April 2, the RCOM and Reliance Jio Infocomm had announced a Rs.1,200-crore deal, under which Reliance Jio will use optic fibre cables owned by RCOM. This was followed by a Rs.12,000 crore deal on June 7, under which Reliance Jio will use the mobile phone towers of RCOM. According to the terms of the deal, there is no upfront payment and RJI will make annual payments of Rs.1,000 crore for about 12 years to RCOM. This is likely to help RCOM service its Rs.2,700-crore annual debt payment obligation.
Posted on: Mon, 24 Jun 2013 06:55:07 +0000
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