NEW DELHI: Reliance Jio on Monday received approval from the National Company Law Tribunal (NCLT) for acquisition of Anil Ambani-led Reliance Infratel (RITL), which owns tower and fibre assets of Reliance Communications (RCOM).
Subsequently, Reliance Projects and Property Management Services, a subsidiary of Reliance Jio will have to deposit Rs 3,720 crore in a State Bank of India (SBI) escrow account to complete the acquisition. RITL, the holding company for tower and fibre assets of RCOM, has fibre assets of nearly 1.78 lakh route kilometers and 43,540 mobile towers across the country.
In November 2019, Mukesh Ambani-led Jio placed a bid of Rs 3,720 crore to acquire assets of the debt-ridden Reliance Communications. On March 4, 2022, the Committee of Creditors approved the resolution plan with a 100% vote. However, the implementation of the resolution plan was delayed because of pendency of the proceedings over distribution of the amount and issuance of ‘no dues’ certificate.
On November 6, Jio had proposed to deposit Rs 3,720 crore in an escrow account to complete the acquisition of RITL. It also moved the tribunal to speed up the acquisition of Reliance Infratel as the delay in acquisition of RITL assets will deteriorate the value of assets.
The company sought that it should be allowed to “deposit the total resolution amount in an account with SBI” and direct the parties involved, “that upon such deposit, the resolution plan shall stand implemented and the applicant shall acquire ownership and control of RITL in terms of the resolution plan”.
It is believed that the funds will be distributed among the lenders. State Bank of India and banks including Doha Bank, Standard Chartered Bank, and Emirates Bank are engaged in a legal battle over the distribution of funds. The matter is pending before the apex court.