Reliance Communications Ltd. (RCOM) announced that the shareholders of the Company approved the monetization of its assets.
The Company announced the results of the postal ballot on February 15, 2018, whereby the shareholders approved the resolution to monetize the Spectrum, Towers, Fiber, Telecom Infrastructure and other assets with an overwhelming majority of 99.91%.
RCOM's asset monetization is proceeding on fast track to close by March 2018, subject to lenders' consents and other regulatory approvals. Post monetization, the debt, and liabilities of the Company will reduce by Rs. 25,000 crores by prepayment of debts and transfer of Department of Telecommunications' Spectrum Installments.
RCOM's continuing operations will comprise stable and profitable business to business (B2B) focused businesses, including Indian and Global Enterprise, Internet Data Centres and the largest private submarine cable network in the world. These B2B businesses are stable, capital light and have sustained and predictable annuity revenues and profits, with immense growth potential amidst relatively low competitive intensity.