Now officially announce by Amabani brothers reliance communication and Jio are ready for merger, reliance jio deal with reliance communications is good news for rcom stock. After RCOM JIO merger news stocks run from Rs. 17 to Rs. 38
RCOM jio merger
Economictimes on rcom jio merger
we are sharing a view of some polular sites what they thinking about merger.
Economictimes Headline: Anil Ambani says RCom & Jio have virtually merged
MUMBAI: A decade after the Ambani brothers split, Reliance CommunicationsBSE 16.76 % (RCom) Chairman Anil Ambani announced that his telecom company has “virtually” merged with Reliance Jio Infocomm, owned by elder brother Mukesh.
As far as our 100 million customers are concerned, as far as our 1 million retailers are concerned, as far as our employees are concerned, and as far as our vendors and partners are concerned, there has already been a virtual merger of the two organisations (RCom and Jio),” Ambani told shareholders at RCom’s AGM on Tuesday.
“Our spectrum is shared, our network is shared, our fibre is shared, our towers are shared, our voice is shared…,” Ambani added. He was responding to shareholder questions about why the two companies aren’t officially merging with each other despite numerous agreements around collaboration.
‘Two Committed Brothers’
RCom and Jio have pacts to share and trade spectrum. Besides, the two also have tower and fibre-sharing agreements. The two telcos have also synced their network operating centres, optic fibre service contracts and network maintenance functions.
“There are two committed brothers — Mukesh Ambani and Anil Ambani — both working relentlessly to fulfil the dream of Dhirubhai Ambani,” said Ambani.
DSIJ on Reliance Communication merger
Dsij Headline: Reliance Jio, RCom, Ambani brothers on the same page?
Reliance Jio may have aided in bridging the gap between the Ambani brothers. At an RCom – Reliance Communications shareholder meet recently, Anil Ambani uttered good words for his brother Mukesh, inkling at softening relations between the two.
Anil commented on RCom’s association with Reliance Jio. He stated that both the brothers were working hand-in-hand to accomplish the dream of their late father Dhirubhai Ambani.
He also added that the association has given birth to a virtual merger between Reliance Jio and RCom. The Reliance Group had split after Dhirubhai’s demise over a feud for control. However, in 2005, they made peace.
Mukesh took reign over oil and gas and petrochemicals while Anil took control of electricity, telecoms and financial services. Anil further added that the company already had the spectrum they needed for 2G, 3G and 4G, plus spectrum trading and sharing with Jio,
The merger would help in beefing it up. He also added that the collaboration would bring down the expenditure substantially and help in surviving in such a competitive environment. Wrestling with the mountain of debt, RCom said that it was planning to pare the Rs.42,650-cr burden by up to 75% over the next one year. The debt would reduce by Rs.20,000 cr. Anil described the three-way merger to be the largest ever collaboration in the domestic telecommunication industry.
He added that this would create a formidable operator with the 2ndlargest holder of spectrum, aggregating 448 MHz across the 850, 900, 1,800 and 2,100 MHz bands. Not to forget it would also make RCom one of the largest and valued corporates with a massive asset base of more than Rs.65,000 cr and networth of Rs.35,000 cr, he said.
Moneycontrol on reliance jio deal with reliance communications
Moneycontrol Headline: Reliance Jio to acquire Reliance Communications’ wireless assets
Reliance Communications has entered into an agreement to sell its wireless assets to Mukesh Ambani-led Reliance Jio, the Anil Ambani-led company said in a statement on Thursday. The transaction, which is subject to lenders’ and other applicable approvals, will close in phased manner in January-March 2018.
While RCom stands to gain from the sale, the proceeds of which will be used for the company’s debt reduction, Reliance Jio expects the assets to bolster the rollout of its wireless and FTTH services.
“Reliance Jio Infocomm Limited (RJIL) or its nominees will acquire assets under four categories – Towers, Optic Fiber Cable Network (OFC), Spectrum and Media, Convergence Nodes (MCN) from RCOM and its affiliates. These assets are strategic in nature and are expected to contribute significantly to the large scale roll-out of wireless and Fiber-to-Home and Enterprise services by RJIL,” Reliance Jio said in a statement.
“Reliance Communications Ltd signs binding definitive agreements with Reliance Jio Infocomm limited for sale of valuable wireless spectrum, towers, fiber and MCNs,” Reliance Communications said in a filing to exchanges.
RCom said the deal consideration comprised of cash payment and transfer of deferred spectrum instalments payable to DoT. The proceeds of the telecom deal will be used 100% for debt reduction, the company said.
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Reliance Communication merger
According to the deal, Reliance Jio will acquire RCom’s assets such as:
— 122.4 MHz of 4G Spectrum in the 800/900/1800/2100 MHz bands
— Over 43,000 towers , amongst the top 3 independent tower holdings in India
— Approximately 1,78,000 RKM of fiber with pan India footprint
— 248 Media Convergence Nodes, covering ~5 Million sqft used for hosting telecom infrastructure
That’s always been our approach to business,” Ambani had said. “We have always stood by those who have supported and believed in us. Only moral financing prevails.”
Reliance jio deal with reliance communications
On Tuesday, Ambani announced that RCom would sell telecom assets, including spectrum, towers. Fibres and some real estate assets worth of Rs 25, 000 crore by the end of March 2018. To pay lenders and exit the strategic debt restructuring programme. This way RCom will achieve full resolution of its debt by cutting it to Rs 6,000 crore by monetising assets.
RCom had a debt of about Rs 45,000 crore as of FY17.
Even the “mighty” house of Tatas had to “gift away” their telecom business (to Airtel). Ambani asserted, sounding bitter about the regulatory framework, saying the long time taken to clear RCom’s merger with Systema Shyam Telecom represents the “unease of doing business”.
“This is a crisis of the wireless telecom sector and it has engulfed many, many people and many, many companies. If it is the mighty house of the Tatas who had to gift their business.