Reliance Communications (RCom) on Monday said it has entered into a binding memorandum of understanding (MoU) with Veecon Media and Television for sale of its subsidiary Reliance Big TV (RBTV), engaged in the business of direct to home (DTH) services across the country.
Pursuant to the transaction, the buyer will acquire the entire shareholding of RBTV with business on the ‘as-is where-is’ basis, along with all the existing trade and contingent liabilities.
The existing DTH licence of Big TV will be renewed by the buyer with submission of the required bank guarantee with the Ministry of Information and Broadcasting.
As part of the transaction, the existing 1.2 million customers of RBTV will continue to enjoy uninterrupted services. It also ensures the continuity of employment for approximately 500 employees of RBTV.
“The transaction will help reduce 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 statement said. FE