Reliance Communications shares surge 35% on wireless assets deal with Jio

RCom said the deal consideration comprised of cash payment and transfer of deferred spectrum installments payable to Department of Telecommunications.

Reliance Communications shares surged as much as 35 percent in early trade Friday after the company signed an agreement to sell its wireless assets to Mukesh Ambani-led Reliance Jio Infocomm.

The rally is an addition to 90 percent upside seen in previous three consecutive sessions.

The transaction, which is subject to lenders' and other applicable approvals, will close in phased manner in January-March 2018.

While RCom stands to gain from the sale, the proceeds of which will be used for the company's debt reduction, Reliance Jio expects the assets to bolster the rollout of its wireless and FTTH services.

"Reliance Jio Infocomm Limited (RJIL) or its nominees will acquire assets under four categories – Towers, Optic Fiber Cable Network (OFC), Spectrum and Media, Convergence Nodes (MCN) from RCom and its affiliates.

For more info click here >>Ripples Advisory