RCom Sells Media Nodes Worth Rs 2000 Cr To Jio

Reliance Communications or RCom on Friday said it has completed sale of media convergence nodes or MCNs worth Rs 2000 crore to Reliance Jio as part its asset sale plan to the big brother’s telecom firm.

“With the successful completion of the MCN monetization transaction, 248 MCNs covering ~5 Million sq. ft. of area, used for hosting the telecom infrastructure, stand transferred to RJIO,” RCom said in a statement.

Besides the MCNs, the company is also selling related infrastructure to Jio.

RCom has a plan to raise around Rs 18,000 crore from selling wireless assets to Jio and real estates to Brookfield as part of its asset monetisation program to reduce its overall debt of Rs close to 50,000 crore.

The Rs 2000 crore it gets from Jio is the first tranche of funds it will get from Jio. Besides, the Anil Ambaniled firm had also annoounced that it will sell 65 MHz of spectrum in 800 MHz band to Jio to raise another Rs 3700 crore in coming times.

RCom is selling its assets to Jio and others as the company has already shut down its wireless or mobile business attributing to stiff competition in the Indian telecom industry. Post Jio’s entry to the telecom business many telecom operators have closed their businesses or merged with other operators. A crowded Indian telecom market with 12 operators, within a matter of one and half year, suddenly shrunk to just 4 operators with three private players and one state run firm.

In another development, the company said it has acquired the bondholder’s approval for the Tender and Exchange offer of US $300 million Bonds with an overwhelming majority of over 83%, at their meeting held today, 24 August 2018, in London.

“Pursuant to the Offer as approved, the Bondholders will receive cash proceeds of up to US $118 million. The Bondholders will also get US $55 million Bonds to be issued by Global Cloud Xchange Limited (holding Company of GCX), a foreign subsidiary of RCom,” added the firm.

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