Reliance Jio looks set to snap up the assets of its bankrupt former rival RCom (Reliance Communications) after the State Bank of India approved an insolvency proposal.
The bank’s board cleared the plan to sell off assets held by RCom along with its subsidiaries Reliance Infratel and Reliance Telecom. The Economic Times (ET) reported that RCom’s creditors expect insolvency proceedings to recoup them INR230 billion, with RCom’s secured debt totalling INR330 billion.
The unaffiliated Reliance Jio has offered INR47 billion ($642.5 million) for Reliance Infratel’s tower and fibre assets, while UV Asset Reconstruction Company is seeking to acquire a number of assets, including real estate and data centres, for INR147 billion.
RCom had been struggling for some time before the decision was made to shutter the business. In a bid to generate money to pay off its creditors, RCom made an attempt to sell its assets to Jio but this was blocked by India’s Department of Telecommunications, prompting RCom to enter insolvency proceedings in February 2019.