Jio May Dis­cuss Busi­ness Rejig at De­cem­ber 11 Board Meet

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

Kolkata: Mukesh Am­bani-led Re­liance Jio In­fo­comm is likely to dis­cuss ways to re­or­ga­nize busi­nesses at its board meet­ing on De­cem­ber 11. “A meet­ing of the board of di­rec­tors of the com­pany will be held on De­cem­ber 11, in­ter alia, to con­sider re­struc­tur­ing/ re­or­ga­ni­za­tion pro­pos­als,” Jio said in an ex­change fil­ing.The com­pany de­clined to share de­tails about spe­cific pro­pos­als likely to be taken up by the board. At press time, ET’s queries to Jio re­mained unan­swered.

The sched­uled board meet­ing comes just months af­ter par­ent, Re­liance In­dus­tries (RIL), ac­quired con­trol­ling stakes in two na­tional ca­ble TV op­er­a­tors — Den Net­works and Hath­way Ca­bles — which is ex­pected to give Jio’s up­com­ing coun­try­wide home broad­band ser­vices a shot in the arm.

In Oc­to­ber, RIL ac­quired 66% and 51.3% stakes in Den Net­works and Hath­way Ca­bles, re­spec­tively, in deals ag­gre­gat­ing ₹ 5,230 crore, which an­a­lysts say will give tele­com arm Jio’s fi­bre-to-home ser­vice busi­ness a head start and help it take on Air­tel’s non-mo­bile busi­nesses, namely, home broad­band and dig­i­tal TV.

Sec­tor an­a­lysts are not rul­ing out pos­si­bil­ity of Jio board dis­cussing debt re­struc­tur­ing plans in run-up to a pos­si­ble fund raise, go­ing for­ward, although this could not be in­de­pen­dent­ly­con­firmed­from the com­pany. Jio’s debt is pegged at roughly ₹ 84,000 crore.

Among lo­cal tel­cos, Jio is seek­ing an early auc­tion of 5G air­waves, un­like in­cum­bents Bharti Air­tel and Voda­fone Idea who want it pushed back to late 2019 and 2020, re­spec­tively.

The board meet comes just months af­ter RIL ac­quired con­trol­ling stakes in Den Net­works and Hath­way Ca­bles

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.