Reliance Jio completes acquisition of RelInfratel
Deposits Rs3,720 cr in SBI escrow account for lenders; Jio submitted bid in Nov 2019, but process couldn’t take off due to differences among lenders over distribution of funds
image for illustrative purpose
Unfolding Deal
- Reliance Infratel was in insolvency resolution process
- CoC approved resolution plan by Jio on March 4, 2020
- On Nov 6, Jio proposed to deposit Rs3,720 cr in an escrow account to complete the acquisition
Mumbai: Reliance Jio Thursday completed the acquisition of Reliance Communication Ltd's (RCOM) tower and fiber assets by paying Rs3,720 crore to the lenders. According to sources, the company has deposited Rs3,720 crore in the escrow account of the State Bank of India (SBI).
In November, the National Company Law Tribunal (NCLT) had given its approval to Jio for the acquisition of Reliance Infratel (RITL), an RCOM subsidiary that houses the tower and fibre assets. The tribunal had allowed Jio to deposit Rs3,720 crore in the escrow account of SBI.
On November 6, Jio moved a petition in the NCLT Mumbai proposing to deposit Rs3,720 crore in an escrow account of SBI to complete the acquisition of Reliance Infratel. In November 2019, Jio had placed a bid of Rs3,720 crore to acquire the tower and fibre asset of RCOM.
