Reliance Communications is set to sell its DTH business Reliance BIG TV to Veecon Media and Television.
The company did not share the financial details of the transaction to revive the wireless business. Reliance Communications is also looking for a strategic investor for its wireless business and tower assets.
Veecon Media and Television will be absorbing existing trade liabilities and contingent liabilities. The buyer will renew the existing DTH license of BIG TV after submitting the required bank guarantee with the Ministry of Information and Broadcasting.
Reliance Communications has 1.2 million DTH customers. Reliance Communications has nearly 500 employees in its DTH business. The company will transfer its 500 employees to Veecon Media and Television.
“The transaction will help reduce the liability of unsecured creditors, benefitting all stakeholders including lenders and shareholders of RCOM. The transaction is in consonance with the RCOM’s stated objective to focus on B2B businesses of New RCOM,” Reliance Communications said.