NEW DELHI: Reliance Communications' executive Punit Garg on Friday said that the merged wireless company with Aircel will be called Aircom.
He said that RCom can monetize 49 percent tower co stake in future though sale or a listing process, while further debt reduction options will include sale of direct-to-home business.
The executive said that the company can also look at strategic transaction in global or Indian enterprise business.
Reliance Communications on Friday said that it has received time till December 2017 to close its transactions with Aircel and Brookfield and reduce debt from Rs 45000 crore to Rs 20000 crore, aiming at a reduction of 60% or Rs 25000 crore.
RCom has been engaged in discussions with its lenders in order to finalise a debt resolution plan. The lenders on Friday constituted a Joint Lenders' Forum (JLF) to consider and approve the company's plans in this regard as part of which there will be a standstill on company’s debt servicing for next 7 months.
RCom had said that the combined RCom-Aircel entity will enjoy substantial benefits of scale, and CAPEX and OPEX synergies with an estimated NPV of Rs. 20,000 crore. As part of this transaction, RCom’s overall debt will reduce by Rs 14,000 crore, together with the transfer of liability for spectrum instalments of an additional approx. Rs. 6,000 crore.
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