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Reliance Jio has completed a transaction to acquire RCom’s tower and fiber assets. On Thursday, Jio deposited INR 3,720 crore in an SBI deposit account, as per the NCLT mandate.
The deal will see Jio’s subsidiary take over 1,78,000 km of optical fiber across the country, while also buying 43,000 mobile towers from debt-ridden RITL (Reliance Infratel), which is the infrastructure company for Reliance Communications (RCom).
Delay due to disputes
Jio was originally slated to take over RITL’s business in 2020, before RITL was able to secure its own resolution plan, which was approved by the NCLT a few months later in December 2020. However, in the last two years, Jio has taken over Reliance Infratel’s was on hold, due to disputes among creditors, as well as delays in the review of RITL’s accounts.
To expedite the procurement process, Reliance Jio proposed to the NCLT Mumbai: “To avoid any further delay, the applicant (Jio) proposes to deposit the total settlement amount in an account with the State Bank of India as directed by this Tribunal in an order for plan approval,” Jio said.
With a total settlement amount of ₹3,720 crore deposited with SBI, Jio’s acquisition of Infratel is complete.
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