The agreement was signed with Pantel Technologies Pvt Limited and Veecon Media & Television Limited, the Anil Ambani group company said.
The move will reduce RCom’s debt to unsecured creditors as the new owners will take the debt and obligations related to the DTH business when they take over the business. RCom did not specify if the buyers would give it any other financial consideration.
“The transaction ensures that all 1.2 million customers of BIG TV shall continue to enjoy uninterrupted services. It also ensures continuity of employment for approximately 500 employees of RBTV. The transaction will help to reduce the liability of unsecured creditors, benefitting all stakeholders, including lenders and shareholders of RCOM,” the company said.
As part of the deal, the existing DTH license of BIG TV is being renewed, and the required bank guarantees have already been submitted to the Ministry of Information and Broadcasting, the company said.
Pantel Technologies sells tablets under the brand name of Penta T-Pad(s) in the Indian, South-East Asian, GCC and African markets.
It has also offers digital computing solutions to the Mauritian and African markets and is headed by Vijender Singh, Chairman & Managing Director of the company.
“The buyers will acquire the entire shareholding of RBTV with business on an “as-is, where-is” basis, along with existing trade and contingent liabilities.
“The transaction is in consonance with RCOM’s stated objective to focus on B2B businesses of the new RCOM,” RCom said.
The move will require the approval of Ministry of Information & Broadcasting and the lenders of RCOM.
The Anil Ambani group said it has cash flows of over Rs 11,300 crore (US $1.7 billion) and net profit of over Rs 5,100 crore (US$ 0.8 billion).
The sale is part of efforts to reduce debt at Reliance Communications, which has gone under due to extreme competition in the market unleashed by new-age 4G networks such as Reliance Jio.