RCom Says It Has Settled Dispute With Tower Unit Minority Shareholders
Reliance Communications Ltd. said it has reached an “amicable settlement” with minority shareholders over the sale of its tower and fibre assets.
The telecom operator’s subsidiary Reliance Infratel Ltd. will inform the National Company Law Appellate Tribunal about the terms of the settlement “shortly”, it said in an exchange filing.
Shareholders, led by HSBC Daisy Investments (Mauritius), together holding 4.26 percent stake, had filed a petition citing oppression of minority investors to stop the deal from going through.
The company said the settlement would pave the way to vacate the stay granted by the National Company Law Tribunal on the asset sale. That will help the company to proceed with an asset monetisation of Rs 8,000 crore as soon as it exits the debt resolution process, the statement said.
Share of Reliance Communications rose as much as 9.8 percent to Rs 16.8 apiece after the announcement.
Separately, the NCLAT allowed RCom to settle insolvency case with the Indian unit of Ericsson AB, if possible, Bloomberg reported. The appellate tribunal agreed to hear the Anil Ambani-led company’s plea to make lenders party to the case and issued notices to Ericsson, State Bank of India, China Development Bank, and Standard Chartered Bank. The network-equipment maker had moved the NCLT to initiate insolvency proceedings against RCom to recover dues worth Rs 1,150 crore.
The appellate tribunal will pass an order on RCom’s plea against insolvency on May 30.