REUTERS - Telecom operator Reliance Communications Ltd (RCom) said on Monday it signed an agreement to sell its non-core Direct-to-Home business, in a bid to reduce debt load.
Veecon Media & Television will buy 100 percent equity stake in Reliance Big TV Ltd (RBTV), the DTH unit of the Anil Ambani-owned company, for an undisclosed amount, along with all existing trade and contingent liabilities.
The existing DTH license of BIG TV will be renewed and about 500 employees of RBTV will be retained, RCom said in a stock exchange filing. bit.ly/2An9Q6A
The deal will help reduce the liability of unsecured creditors, the debt-laden company added.
Last month, RCom reached a new debt repayment plan with lenders, including a pledge to raise up to 170 billion rupees ($2.63 billion) by selling assets.
The company, with 443 billion rupees of net debt as of March, is the most leveraged among listed Indian telecom companies.
($1 = 64.6750 Indian rupees)
Reporting by Vishal Sridhar in Bengaluru; Editing by Amrutha Gayathri