Jio May Discuss Business Rejig at December 11 Board Meet
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