Reliance Big TV to continue under Veecon ownershipMonday, November 6th, 2017
Reliance Communication Limited enters into binding MOU to sell 100% equity in non core DTH business
- Reliance Big TV Limited (RBTV) to be acquired by Veecom Media & Television Limited (VMTL)
- VMTL will take over all of RBTV’s trade and contingent liabilities
- RBTV will renew DTH license and ensure service continuity for over 1.2 million customers
- 500 employees of RBTV will be retained by VMTL
- Transaction is subject to regulatory and lenders’ approvals
MUMBAI — Reliance Communications Limited (RCOM) today entered into binding Memorandum Of Understanding with Veecon Media and Television Limited, for sale of its subsidiary Reliance BIG TV Limited (RBTV), engaged in the business of Direct to Home (DTH) services across India.
Pursuant to the transaction, the buyer will acquire the entire shareholding of RBTV with business on “as-is where-is” basis, along with all existing trade liabilities and contingent liabilities.
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 transaction ensures that all existing 1.2 Million customers of RBTV shall continue to enjoy uninterrupted services. It also ensures the continuity of employment for approximately 500 employees of RBTV.
The transaction will help reduce the liability of unsecured creditors, benefitting all stakeholders including lenders and shareholders of RCOM.
The transaction is in consonance with the RCOM’s stated objective to focus on B2B businesses of New RCOM.
The successful culmination of the transaction is subject to the requisite approvals from licensors, regulatory authorities and lenders of RCOM.