Jio to acquire debt-laden Reliance Infratel
The National Company Law Tribunal (NCLT) has authorised Jio, a telecom company owned by Mukesh Ambani, to acquire Reliance Infratel, a company owned by Anil Ambani (RITL). In response to Jio’s application on October 20, the order was passed.
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Ambani made a bid of Rs 3,720 crore in November 2019 to purchase the tower and fibre assets of the indebted subsidiary of the Reliance Communications company, which is run by his younger brother Anil Ambani. Reliance Communications (RCom) and its two subsidiaries have been the subject of insolvency proceedings since May 2019. The holding company for RCom’s tower and fibre assets is called RITL. 43,540 mobile towers and 178,000 route kilometres of fibre optic infrastructure are owned and operated by Infratel. Considering that Jio is expanding its 5G network across India.
The National Company Law Tribunal (NCLT) has authorised Jio, a telecom company owned by Mukesh Ambani, to acquire Reliance Infratel, a company owned by Anil Ambani (RITL). In response to Jio’s application on October 20, the order was passed.
To complete the acquisition of RCOM’s tower and fibre assets, the Mumbai bench of the tribunal requested the telecom company to deposit Rs 3,720 crore in the State Bank of India (SBI) escrow account on Monday, November 21, 2022.
Reliance Infratel
According to a PTI report, the business requested a swift trial for the acquisition of Reliance Infratel in a filing to the National Company Law Tribunal earlier this month. It adamantly demanded permission to “deposit the total resolution amount in an account with SBI” and instructed the parties concerned that “upon such deposit, the resolution plan shall stand implemented and the applicant shall acquire ownership and control of RITL in accordance with the resolution plan.”
To complete the acquisition procedure, Jio suggested on November 6 to deposit Rs 3,720 crore in an escrow account.
After Jio made a takeover offer of Rs 3,720 crore to buy RCom’s tower and fibre assets, the Committee of Creditors unanimously approved the company’s resolution plan in 2020.
According to the PTI report, Jio stated in its application to NCLT earlier this month that the delay in the acquisition of RITL assets due to inter-creditor disputes will reduce the value of the assets.
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