Consequent to the arrangement, Jio or its nominees will acquire assets under four groups – mobile towers, optic fiber cable system, range and media convergence nodes – from RCom and its affiliates, the announcement said.
“These resources are strategic in nature and are expected to contribute considerably to the huge scale roll-out of fiber and wireless to home and business services by RJIL,” it stated.
An advantage monetisation process for RCom resources was mandated from the lenders of RCom, who appointed SBI Capital Markets Limited to conduct the procedure. The practice is supervised by an independent group of business specialists. RJIL emerged as the successful bidder at the two-stage bidding procedure.
“The purchase is subject to receipt of requisite approvals from governmental and regulatory authorities, consents from all lenders, launch of encumbrances on the said assets and additional conditions precedent. The thought is payable at completion and is subject to adjustments as stated in the agreement,” the announcement said.
RJIL has been advised by Goldman Sachs, Citigroup Global Markets, JM Financial Private Limited, Davis Polk & Wardwell LLP, Cyril Amarchand Mangaldas, Khaitan & Co and Ernst & Young with this transaction.