Reliance Communications (RCOM) on Tuesday said it has entered into a binding "Share Purchase Agreement" with Pantel Technologies and Veecon Media & Television for the sale of its subsidiary Reliance BIG TV (RBTV).
According to the company, pursuant to this transaction, the buyers will acquire the entire shareholding of its subsidiary engaged in the business of Direct-to-Home (DTH) services across India on an "as-is, where-is" basis.
"The existing DTH license of BIG TV is being renewed and the required bank guarantees have already been submitted to the Ministry of Information and Broadcasting," the company said in a statement.
"The transaction ensures that all 1.2 million customers of BIG TV shall continue to enjoy uninterrupted services. It also ensures continuity of employment for approximately 500 employees of RBTV."
The company said the transaction will help it to reduce the liability of unsecured creditors, benefitting all stakeholders, including lenders and shareholders of RCOM.
"The transaction is in consonance with RCOM's stated objective to focus on B2B businesses of the new RCOM," the statement said.
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--IANS
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