RCOM and Reliance Jio terminate multi-crore wireless infrastructure asset deal by mutual consent

Reliance Communications (RCOM) just announced that the deal between  RCOM, RTL, RITL (RCOM Group) and RJIL for sale of certain specified telecom assets have been terminated today by mutual agreement. The company says that this is due to lack of consent from its lenders and permissions from telecom department among other reasons since the agreements nearly 15 months ago. Back in December 2017, Reliance Jio signed an agreement for the acquisition of specified telecom assets of Reliance Communications (RCOM) and its affiliates as a part of RCOM’s debt reduction. Later in August 2018, RCOM announced the completion of the sale, worth Rs 2,000 crore, to Reliance Jio Infocomm Limited (RJIO). Various factors and developments for the fall of the deal include: Non-receipt of consents / objections from RCOM's over 40 foreign and Indian Lenders in relation to the proposed transactions despite over 45 meetings and the passage of over 15 months Non-receipt of requisite permissions and approvals from DoT The decision taken by the Board of Directors of RCOM at its meeting held on 1 st February 2019 to seek fast track resolution of its overall debt through the National Company Law Tribunal, Mumbai The applications filed before the Hon'ble NCLAT on 4th February ...

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