Reliance Jio deposits Rs 3,720 cr to acquire Reliance Infratel
Two years after the National Company Law Tribunal (NCLT) approved Rs 3,720 crore resolution plan of Reliance Jio to acquire Anil Ambani’s Reliance Infratel Ltd, the Mukesh Ambani-owned company finally closed the deal on 22 December 2022 as it deposited Rs 3,720 crore in an escrow account with SBI.
Reliance Jio informed the same to exchanges on 22 December.
As per information shared by Reliance Jio, Reliance Infratel has allotted to Reliance Projects & Property Management Services Limited (RPPMSL), a wholly owned subsidiary of Reliance Industries, 5 million equity shares of Rs 10 each, for cash, aggregating Rs 5 crore; and 3720 million Zero Coupon Optionally Fully Convertible Debentures of Rs. 10 each, for cash, aggregating Rs 3,720 crore.
The existing paid-up equity share capital of Reliance Infratel has been cancelled, and by virtue of this cancellation, Reliance Jio now holds 100% equity share capital of the former.
The resolution plan was approved by the NCLT on 3 December 2020 after the plan was approved by 100% of the members of the Committee of Creditors on 4 March 2020. As per the resolution plan, Reliance Jio would pay Rs. 4,500 crore to acquire assets of a debt-ridden subsidiary of his brother Anil Ambani’s firm Reliance Communications. Reliance Infratel owed over Rs 41,000 crore to creditors.
The Mumbai bench of the NCLT recently allowed Reliance Jio to deposit the ‘total resolution amount’ in an account with State Bank of India and directed that upon such deposit, the resolution plan shall stand implemented and the Resolution Applicant shall acquire the ownership and control of RITL in terms of Resolution Plan.
Reliance Infratel was incorporated in India on 16 April 2001. The turnover of the company for the FY22, FY21 and FY20 was Rs. 1,186 crore, Rs. 1,208 crore and Rs. 1,322 crore, respectively.
Reliance Infratel is one of the major private telecom infrastructure providers in the country and the acquisition is synergetic with the telecommunications operations of Reliance Jio Infocomm , subsidiary of the Company.
Also Read: NCLT approves Jio’s Rs 3,720-crore bid for Reliance Infratel
