November 6, 2017 / 12:02 PM / 5 months ago

Reliance Communications to sell DTH business to reduce debt

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.

A taxi drives past a Reliance Communications Ltd., controlled by billionaire Anil Ambani, office building in Kolkata, India, September 9, 2016. REUTERS/Rupak De Chowdhuri/Files

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.

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

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