Reliance Jio to acquire Reliance Communications' wireless assets

The biggest shakeup in the Indian telecom sector took place today, (28th Dec, 2017 on the 85th birthday anniversary of Dhirubai Ambani, with the elder brother Mukesh Ambani of Reliance Jio  signing a deal with younger brother  Anil Ambani of Reliance Communications Ltd. The foremost message the brothers wanted to send out that the valuation was done at arm's length, meaning no compromise took place on the pricing angle.

RCom as entered into an agreement to sell its wireless assets to Mukesh Ambani-led Reliance Jio, the Anil Ambani-led company said in a statement on Thursday. The transaction, which is subject to lenders' and other applicable approvals, will close in phased manner in January-March 2018

The proceeds of the mega telecom deal will be used 100% for debt reduction, RCom said.

While RCom stands to gain from the sale, the proceeds of which will be used for the company's debt reduction, Reliance Jio expects the assets to bolster the rollout of its wireless and FTTH services.