Mukesh to bail out Anil Ambani’s telecom ops; heres all about it
Younger brother Anil Ambani’s struggling telecom operations received a bail-out from elder brother Mukesh Ambani’s Reliance Jio as the siblings announced a wide-ranging, but expected, deal for spectrum, towers and optic fibre assets on their father’s birthday.
While the companies are yet to announce the deal size, it is estimated to be worth around Rs 23,000 crore, a massive relief for Anil’s debt-ridden Reliance Communications (RCom) that is saddled with loans of nearly Rs 45,000 crore and was facing possible bankruptcy proceedings.
The deal, announced late on Thursday evening, marks the exit of Anil’s RCom from the consumer telecom space.
This was the segment he had received in 2005 as part of a bitterly-fought family settlement with elder brother Mukesh Ambani.
He had already stopped the company’s consumer 2G and 3G operations at the end of November deciding to continue with only the enterprise business as well as sale of assets.
The company’s recent struggles to stay afloat are in sharp contrast to its heyday in 2010, when it was India’s second largest mobile operator. >