Anil Ambani: RCom-Aircel merged entity to be called Aircom
- Author: Zachary Reyes Jun 02, 2017,
Jun 02, 2017, 19:40
RCOM said this week that its merger with Aircel's wireless business unit which was signed in September past year will help the company reduce debt by Rs 14,000 crore, while its tower sale deal with asset management company Brookfield will additionally contribute to Rs 11,000 crore in debt reduction.
Reliance Communications Ltd's lenders have agreed to a seven-month moratorium on the debt obligations of Indian billionaire Anil Ambani's wireless business, which has been battered by investors questioning the company's creditworthiness. The lenders met on Friday to hasten up RCOM's outstanding debt payment of Rs 25,000 crore.
Ambani said the company is looking for strategic deals for Global Cloud Xchange as well.
Ambani further said that RCOM would complete the Aircel and Brookfield transactions by September 2017, way before the deadline of December 2017.
The company is merging its business with Aircel and will be renamed Aircom post the merger.
In granting the "standstill", the lenders have taken note of the "advanced stage of implementation of RCOM's strategic transformation programme" involving the two deals, the company said.
Rcom's stock traded at 20.65 rupees at the close of trading in Mumbai, dropping 16% for the week.
Anil Ambani, chairman of the Reliance Anil Dhirubhai Ambani Group, poses for photographers before addressing the annual shareholders meeting in Mumbai, August 27, 2013.
Ambani also expressed his disappointment with the rating agencies, blaming them for the churn in the telecom industry. And if they lend, the conditions will be very stringent. If you ask any lender will you lend to telecom, the answer will be yes or no.
Rcom this week reported its first full-year loss since its inception of Rs 1,285 crore for fiscal gone by as against a net profit of Rs 660 crore when compared on a like to like basis. The number of wireless customers of the company stands at around 85 million. Around 17 public sector banks are exposed to the company's default rated debts.