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Reliance Group AGM: Here are the key takeaways

telecom | Sept 18, 2018 11:06 AM IST

Reliance Group AGM: Here are the key takeaways

Speaking at the Annual General Meeting of Reliance Group companies, chairman Anil Ambani said that hyper-competition in the telecom market had led to the consolidation of the firms.

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Ambani added that the competition will lead to other unintended consequences as well.
Here are the key takeaways from the AGM: 
  • Reliance Communications: Ambani said the company is committed to examine and appropriately monetise the remaining business in Reliance Communications. In August, debt-ridden Reliance Communications completed the sale of its media convergence nodes (MCNs) and related infrastructure assets worth Rs 2,000 crore to Reliance Jio Infocomm.
  • Ambani said that all the lenders, including the bondholders and the Chinese banks, have given their in-principle approval for the resolution plan for the telco and the resolution is expected to be completed in next coming months.
  • The firm, under the resolution plan, looks to sell fiber, towers and spectrum to Reliance Jio. Spectrum trading and sharing deal with Jio is yet to be approved by the Department of Telecommunications.
  • For the other businesses of RCom, which include enterprise, data, submarine and long distance international voice calls, Ambani said the company will follow value accretive procedure and consider monetisation only at an appropriate time.
    • Reliance Realty: On Reliance Realty, Ambani said the company plans to develop the Dhirubhai Ambani Knowledge City (DAKC) in the next couple of years and aims to create a commercial space of up to 30-meter square feet.
    • The DAKC aims to create a value of more than Rs 25,000 crore for the company's shareholders. The proceeds from the DAKC will be used to repay lenders, Ambani said.
      Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.
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