RCom sells second tranche to Jio as spectrum talks continue
Reliance Communications has completed another stage in the sale of its Indian telecoms assets to unrelated rival operator Reliance Jio.
The company has sold 178,000km of its fibre network across the country for a total price of 30 billion rupees (about $430 million).
This is its second sale of infrastructure to Reliance Jio. Last week it completed the sale of its nationwide media convergence nodes and related infrastructure assets worth 20 billion rupees ($285 million) to Reliance Jio.
RCom is also negotiating the sale of its spectrum to Jio, potentially the most valuable tranche in a process that will see it move out of the Indian consumer market entirely.
That will leave Global Cloud Xchange (GCX) plus data centres and its Indian enterprise business in RCom’s hands. As Capacity has reported, RCom is looking at two bids, each worth $1.1 billion, for that complete business.
At the same time RCom announced that holders of $300 million worth of bonds have agreed to sell their interest for $118 million in cash plus $55 million in GCX bonds – equivalent to a total of $173 million, just 57% of the original value. The GCX bonds will mature in four years, said RCom.
The two bidders for GCX and related businesses are I Squared Capital, which already owns HGC Global Communications, and a consortium of three other private equity groups, TPG, Blackstone and Värde.