Deal Street

December 29, 2017

Cyril, Khaitan help Mukesh Ambani to buy RCom assets


reliance-jio-and-rcom-deal

Ending all speculations on the RCom deal, Mukesh Ambani owned Reliance Jio has announced to acquire the assets of Reliance Communications which include the spectrum, mobile towers and optical fibre network.

As per the statement issued by the Reliance Jio, “These assets are strategic in nature and are expected to contribute significantly to the large scale roll-out of wireless and Fiber to Home and Enterprise services by RJIL [Reliance Jio].”

According to reports, Cyril Shroff, Managing Partner in Cyril Amarchand Mangaldas along with Head and Partner L Viswanathan have advised Reliance Jio and Khaitan & Co and the US firm Davis Polk & Wardwell too have acted for Jio, in the billion dollar deal.

With a debt of Rs 45,000 crore RCom have handled the legal elements of the transaction internally. The proceeds of the sale will primarily be used to reduce Reliance Communications debt, the report stated.

The deal is subject to government and other regulatory approvals.

RCom said in a statement that, “The RJio deal consideration comprises primarily of cash payment and includes transfer of deferred spectrum installments payable to the Department of Telecommunications. The company (RCom) will utilize the proceeds of the monetization of this cash deal solely for pre-payment of debt to its lenders.”

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