Reliance Jio, Airtel in race for Anil Ambani's RCom assets

The Anil Ambani-led telecom company has been struggling with the long-standing debt of about Rs 46,000 crore.

Mukesh Ambani's Reliance Jio and Bharti Airtel are among the top contenders for the assets of the bankrupt Reliance Communications, Reliance Telecom and Reliance Infratel. Major asset management companies and telecom tower operators are also eyeing the assets and have submitted their expressions of interest (Eols) to compete with the telecom giants.

The Economic times reported that about 12 companies have sent their expressions of interest to buy the RCom assets. However, Vodafone Idea was not in the list of suitors. As per the report, Deloitte will manage the bankruptcy process of RCom.

RCom's assets such as 14 broadcasting airwaves, 43,000 telecom towers housed under Reliance Infratel and some fiber and real estate assets are listed for sale. RCom will lose a major part of its present revenue after the license for 800 MHz 4G spectrums expires in 2021.

The Anil Ambani-led telecom company has been in news for the long-standing debt of about Rs 46,000 crore. ET reported that the company owes money to 39 financial creditors. The company and its units also have hundreds of operational creditors.

Airtel is eyeing RCom's assets in view of upcoming 5G plans after acquiring the airwaves. The company had faced a setback following the success of Jio, and is looking to revive its market share by buying RCom's airwaves.

However, with private equity firms seeking deals in the sector, the battle for the asset acquisition might get intense. Their interest would mostly lie on the assets rather than spectrum, which increases the competition between the telecom giants.

According to the latest reports, a consortium led by Canada's Brookfield Asset Management was in talks to buy Reliance Industries' Reliance Jio Infratel unit in a multi-stage deal.