Reliance Industries Ltd said on Monday that its subsidiary Reliance Jio Infocomm Ltd has extended the term of the definitive agreement for the acquisition of specified assets of Reliance Communications Ltd and its affiliates to 28 June next year.
The acquisition is subject to the receipt of requisite approvals from governmental and regulatory authorities, consent from all lenders, release of all encumbrances on the said assets and other conditions precedent.
In a separate filing, Reliance Communications also said the validity of the agreements signed in December last year has been extended.
The deal involves Reliance Communications selling its telecom towers, spectrum, optic fibre network and media convergence nodes to Reliance Jio.
The companies didn’t disclose the deal value at that time.
Reliance Industries, which derives the bulk of its revenue from its energy business, re-entered the telecom sector in India in 2016 with the launch of unit Reliance Jio Infocomm. It went on to shake up the mobile-phone industry with its cut-throat tariffs, triggering a wave of consolidation. Reliance Jio is now among the top three telecom operators in the country.
Earlier this month, the telecom department didn’t give its approval for the spectrum trading deal between Reliance Jio and Reliance Communications, according to media reports.
Citing people aware of the development, Press Trust of India reported that Reliance Jio is not willing to take any payment liability of Reliance Communications to complete spectrum trading deal between the two companies.
Reliance Communications said in an earlier statement its wholly-owned subsidiary Reliance Realty Ltd had submitted the corporate guarantee of Rs 1,400 crore to the department of telecommunications, as per the order of Supreme Court.