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RCom to sell DTH business Big TV to Veecon Media and Television

RBTV's 1.2 million customers will continue to enjoy uninterrupted services

Press Trust of India  |  New Delhi 

A man walks past a logo of Reliance Communication before the Annual General Meeting in Mumbai. (Photo: Reuters)
A man walks past a logo of Reliance Communication before the Annual General Meeting in Mumbai. (Photo: Reuters)

Debt-laden Reliance Communications on Monday said it would sell its direct-to-home (DTH) subsidiary, Reliance BIG TV, to

Veecon will "acquire the entire shareholding of RBTV with business on 'as-is where-is' basis, along with all existing trade liabilities and contingent liabilities", Reliance Communications (RCom) said in a statement.

The have entered into a binding memorandum of understanding to this effect, it added. As part of the agreement, Veecon will retain nearly 500 employees of RBTV.

"The existing DTH licence 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 statement said.

RBTV's 1.2 million customers will continue to enjoy uninterrupted services, it added.

"The transaction will help reduce the liability of unsecured creditors, benefiting all stakeholders, including lenders and shareholders of RCom," it said.

The deal is subject to requisite approvals from licensors, regulatory authorities and lenders of

The transaction is part of RCom's efforts to focus on B2B businesses.

RCom, which plans to shut down voice call service from December 1, has also made a comprehensive resolution plan to its domestic and foreign lenders. It had earlier stated that the lenders would convert part of their to equity to gain 51 per cent control of the company.

The Anil Ambani-led company will also sell telecom tower and real estate business to pay off Rs 27,000 crore out of Rs 45,000 crore on its books, it had stated last month. 

First Published: Mon, November 06 2017. 18:25 IST
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