Reliance Communications shares surge 35% on wireless assets deal with Jio
Reliance Communications shares surged as much as 35 percent in early trade on Friday after the company signed an agreement to sell its wireless assets to Mukesh Ambani-led Reliance Jio Infocomm.
Reliance Jio signed a deal to buy Reliance Communications assets as Reliance communications were facing debt burden. The Wireless Spectrum, Telecom Towers, Fiber and Multi Channel Network (MCNS) related to the RCom will be handovered to Reliance Jio Infocom Ltd (RJIL). With the deal 4G spectrum and 43,000 towers will be under Jio. Reliance Jio released an official statement regarding this.
The transactions are expected to be completed by January-March next year. By October, the Reliance communication has a debt of over Rs 45,000 crore. RCom has come up with a new Renaissance scheme to reduce debt.
Jio has filed the highest bid to buy RCom mobile assets. RCom is trying to limit its debt to Rs 6,000 crore by bringing this new scheme.
The news that the assets of RCom are going to be bought by Mukesh Ambani led Reliance Jio for the past one week. RCom shares were gaining momentum. At one stage, it rose by 41 per cent to Rs. 23 per share. The market value of the company increased by Rs 1388.88 crore to Rs 5898.88 crore. From December 19 to December 27, RCom shares rose by 110 per cent to Rs 26.85 per share.