Debt-ridden Reliance Communications (RCom) has entered into an agreement to sell its entire stake in Direct-To-Home (DTH) business Reliance BIG TV (RBTV) to tablet manufacturer Pantel Technologies and group company Veecon Media and Television.
Pursuant to this transaction, the buyers will acquire the entire shareholding of Reliance BIG TV with business on an “as-is, where-is” basis. The transaction ensures that all 1.2 million customers of BIG TV shall continue to enjoy uninterrupted services, the company said in a statement.
It also ensures continuity of employment for about 500 employees of RBTV, it added.
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 Rcom’s objective to focus on business-to-business segment.
The transaction is subject to requisite approvals from licensors, regulatory authorities and lenders of RCom, it added.
Pantel Technologies is an IT and communication devices company, selling tablet PCs under the brand name of Penta T-Pad in the Indian, South-East Asian, Gulf Cooperation Council countries and African markets.
RBTV’s DTH licence which was to expire on November 27 was renewed with Pantel providing bank guarantees of about Rs 10 crore.