Reliance Jio emerges highest bidder for Reliance Infratel
15 January 2020
Mukesh Ambani-led Reliance Jio Infocom has emerged the top bidder for debt-laden Reliance Infratel, pipping rival Bharti Airtel as well as UV Asset Reconstruction Company, reports citing sources close to the development said.
UV Asset Reconstruction Company (UVARCL), however, has been declared the highest bidder for both Reliance Communications and Reliance Telecom, CNBC-TV18 cited sources aware of the development as saying.
In fact, Bharti Airtel, which submitted bids for all three companies, failed to secure any of them as lenders to the Anil Ambani-led Reliance Communications, Reliance Infratel, and Reliance Telecom on Tuesday declared the highest bidder (H1) for each of the group companies.
Reports said Reliance Jio offered Rs3,609 crore for financial creditors of Reliance Infratel, whereas Bharti Airtel is understood to have offered Rs1,439 crore for financial creditors and another Rs360 crore for operational creditors. UVARCL had offered Rs5 crore upfront cash settlement and Rs2,450 crore long term zero-coupon bonds for Reliance Infratel, the report added.
UVARCL emerged highest bidder for Reliance Communications with an offer of Rs5 crore cash settlement, and Rs9,100 crore in the form of long term zero-coupon bonds, whereas Bharti Airtel submitted a bid of Rs680 crore for financial creditors, and Rs170 crore for operational creditors while Varde Partners offered Rs49 crore upfront to lenders, Rs2,320 crore in the form of long term zero-coupon bonds and Rs8,760 crore junior unsecured debt, say reports.
For Reliance Telecom, Bharti Airtel offered Rs104 crore, including Rs83 crore for financial creditors and Rs21 crore for operational creditors, and Varde Partners is reported to have offered Rs1 crore upfront, and Rs32,692 in the form of various long term debt instruments, as per sources. However, lenders have decided to declare UVARCL as the highest bidder with an offer of Rs11 crore upfront cash settlement, and Rs910 cr long term zero-coupon bonds.
Reliance Jio had only bid for Reliance Infratel, Bharti Airtel and UV Asset Reconstruction Company (UV ARCL) had bid for all three and US-based Varde Partners submitted a bid for Reliance Communications and Reliance Telecom, the people quoted above said.
The three Anil Ambani group companies are collectively owe creditor banks over Rs86,000 crore. Reliance Communications is facing claims of over Rs49,190 crore, Reliance Telecom over Rs24,300 crore and Reliance Infratel over Rs12,600 crore.