Reliance Jio and Reliance Communications (RCOM) have decided to terminate their 15-month old deal worth Rs 24,000 crore.
Reliance Jio wanted to purchase telecom towers, optic fiber cable network, spectrum and media convergence nodes from RCOM.
RCOM’s telecom assets include more than 43,000 towers, 1.78-lakh route km of optical fibre cable network, 122.4 MHz of spectrum in the 800, 900, 1800 and 2100 MHz bands and 248 media convergence nodes.
Mukesh Ambani, the promoter of Reliance Jio and Anil Ambani, the promoter of the ailing Reliance Communications finalized the agreements on 28 December 2017 and 11 August 2018 to buy telecom assets from RCOM.
The main reason for cancelling the agreement was the non-receipt of consents from over 40 foreign and Indian lenders of RCOM in relation to the proposed transactions despite over 45 meetings and the passage of over 15 months.
Reliance Jio and Reliance Communications also did not receive approvals from the department of telecommunications (DoT).
The National Company Law Tribunal, Mumbai, on 4 February 2019, restrained the sale of any property of RCOM.