- RELIANCE COMMUNICATIONS LIMITED (RCOM) ASSET MONETIZATION PROGRAMME IS AT ADVANCED STAGE
- RCOM ASSETS DERIVE SIGNIFICANT INTERESTS FROM INDIAN AND OVERSEAS TELCOS, STRATEGIC INVESTORS AND PE FIRMS
- LARGE NUMBER OF POTENTIAL INVESTORS PARTICIPATE IN THE TRANSPARENT AND COMPETITIVE PROCESS FOR MONETIZATION OF:
- WIRELESS SPECTRUM AND RELATED ASSETS
- TOWER, FIBER AND MCN (MEDIA CONVERGENCE NODES) ASSETS
- STANDSTILL PERIOD (FOR INTEREST AND PRINCIPAL REPAYMENTS) CONTINUES TILL DECEMBER 2018 AS PER RBI SDR GUIDELINES
- RCOM BROADBASES ITS BOARD – INDUCTS TWO INDEPENDENT DIRECTORS AND TWO NON EXECUTIVE DIRECTORS
Mumbai, November 11, 2017: Reliance Communications Limited (RCOM) today announced its consolidated financial results for the quarter ended September 30, 2017.
Consolidated revenues stood at Rs. 2667 crore and EBITDA at Rs. (474) crore. Indian operations’ revenues and EBITDA stood at Rs. 2160 crore and Rs. (610) crore respectively; while Global revenues and EBITDA were Rs. 681 crore and Rs. 136 crore, respectively. These results include the impact of business restructuring costs being incurred for the exercise undertaken by the Company.
The strategic transformation of RCOM is well underway. The monetization of RCOM assets being carried out in a transparent process anchored by SBI Capital Markets Limited is at advanced stage. Expressions of Interest have been received from large number of domestic and international Telecom and Private Equity players for various assets including Spectrum, Tower & Fiber and Real Estate. The monetization of its various assets will help in substantial repayment of debt to lenders and will ensure that New RCOM has a sustainable level of debt. Significant Interests have also been received from strategic investors for stake in New RCOM.
The New RCOM will have viable, sustainable and profitable B2B businesses with a strong domestic and global footprint. Its B2B business portfolio shall comprise Enterprise, Carrier, Internet Data Centre and global submarine cable network spanning continents. New RCOM will rank among the Top 3 data players in India. These B2B businesses are stable, capital light with sustained and predictable annuity revenues and profits, and immense growth potential amidst low competitive intensity. These businesses generate equal revenues from domestic and overseas operations.
The Stand Still Period for Principal and Interest Repayments for RCOM is till December 2018 as per RBI Guidelines.
RCOM successfully completed the merger of SSTL’s wireless operations on 31st October 2017. As a part of this transaction, RCOM has issued shares to the tune of 10% of equity shareholding of Reliance Communications Limited to SSTL. RCOM’s Spectrum portfolio is enhanced by 30 MHz of superior 800/850 MHz spectrum valued at Rs.7,400 Crore as per latest auction prices. This will also result in extension of the validity of RCOM’s spectrum portfolio in the 800 / 850 MHz band in eight important Circles (Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP-West and West Bengal) by a period of 12 years—from 2021 to 2033
RCOM strengthened its Board by inducting 4 new directors on the Board of the Company, as follows:
Ms. Ryna Karani – Independent Director, B.A., LL.B is lawyer with vast professional experience.
Mrs. Chhaya Virani – Independent Director, holds bachelors’ degree in Arts and Legislative Laws and is a lawyer with vast professional experience.
Mr. William Barney (Bill Barney) is presently Co-CEO of the Company and also Director & CEO of Global Cloud Xchange (GCX), a subsidiary of the Company. Mr. Barney has been elevated to the Board as Director.
Mr. Suresh Rangachar, presently Executive Director of Reliance Infratel Limited (RITL), a subsidiary of the Company has been elevated to the Board of the Company as Director.