Reliance Jio gets NCLT ‘Ok’ to demerge fibre, tower assets

NEW DELHI: Reliance Jio Infocomm (Jio) has received a nod from the company law tribunal to hive off its fibre and tower businesses into two separate units, which the telco hopes to monetize in the near future.
“Further to our letters dated December 11, 2018 and February 19, 2019, we would like to inform that the Hon’ble National Company Law Tribunal, Ahmedabad Bench, vide its Order dated March 20, 2019, has approved the Scheme”, said the operator in a regulatory filing on Friday .
The company is seeking regulatory approvals for demerging the fibre and tower businesses into Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd, respectively.
ET has reported that after transferring fibre and tower assets into the two separate companies, the Mukesh Ambani-owned company will monetise them via a sale and leaseback or InvIT (investment trust) structure.