Categories: Business

RCOM enters into pact to sell DTH operation

Mumbai, Nov 28 (IANS) Reliance Communications (RCOM) on Tuesday said it has entered into a binding "Share Purchase Agreement" with Pantel Technologies and Veecon Media & Television for the sale of its subsidiary Reliance BIG TV (RBTV).

According to the company, pursuant to this transaction, the buyers will acquire the entire shareholding of its subsidiary engaged in the business of Direct-to-Home (DTH) services across India on an "as-is, where-is" basis.

"The existing DTH license of BIG TV is being renewed and the required bank guarantees have already been submitted to the Ministry of Information and Broadcasting," the company said in a statement.

"The transaction ensures that all 1.2 million customers of BIG TV shall continue to enjoy uninterrupted services. It also ensures continuity of employment for approximately 500 employees of RBTV."

The company said the transaction will help it to reduce the liability of unsecured creditors, benefitting all stakeholders, including lenders and shareholders of RCOM.

"The transaction is in consonance with RCOM's stated objective to focus on B2B businesses of the new RCOM," the statement said.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)

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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.

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