Court greenlights Jio's RCOM asset purchase

6 Aug 2018

India’s Supreme Court has given Reliance Communications (RCOM) permission to go ahead with the sale of its assets to Reliance Jio Infocomm (Jio), requiring the provider to pay INR5.5 billion (USD80.3 million) to Swedish vendor Ericsson by 30 September this year, the Economic Times writes. As noted by TeleGeography’s GlobalComms Database, RCOM closed down the majority of its wireless services in December last year after its planned merger with Aircel collapsed, and the group has since been embroiled in disputes with its financial and operational creditors over its plans to clear its debts. RCOM has agreed to sell its wireless towers, spectrum and fibre infrastructure assets to Jio, whilst Canada’s Brookfield will purchase some of the company’s real estate assets, but the transaction have so far been prevented by the various clashes, threatening to push RCOM into insolvency.

India, Ericsson, Reliance Communications (RCOM), Reliance Jio Infocomm (Jio)