RCom share price surges after Mukesh Ambani bails out brother Anil on Ericsson dues

In yet another moment of joy for Anil Ambani, the shares of his telecom company Reliance Communication witnessed a decent jump on Tuesday morning.

Anil thanked Mukesh Ambani for standing by him in trying times

Reliance Communications made a Rs 550 crore payment to Ericsson

Anil Ambani also thanked Mukesh and his wife Nita for bailing him out

New Delhi: In yet another moment of joy for Anil Ambani, the shares of his telecom company Reliance Communication witnessed a decent jump on Tuesday morning, after Asia’s richest man and his elder brother Mukesh Ambani bailed out the firm on Ericsson dues. As per reports, RCom shares surged in trade for 10 per cent to Rs 4.40 to get locked on the upper circuit on the National Stock Exchange (NSE). Mukesh Ambani, on Monday, helped his younger brother at the eleventh hour by paying of Rs 550 crore dues, including interest, to Swedish multinational networking and telecommunications firm. “My sincere and heartfelt thanks to my respected elder brother, Mukesh and Nita, for standing by me during these trying times, and demonstrating the importance of staying true to our strong family values by extending this timely support. I and my family are grateful we have moved beyond the past, and are deeply touched with this gesture,” Anil Ambani said in a statement. Today was the last day of the deadline given to Anil Ambani from Supreme Court to pay off the dues to Ericsson or the debt-laden businessman had to face a jail term of around 3 months. Thought the statement issued by RCom chief did not have a clear mention of his elder brother giving him the money, but a special thanks to both Mukesh Ambani and his wife Nita Ambani was given. Interestingly, the statement also confirmed that Reliance Communications has made a payment of Rs 550 crore and interest thereon to Ericsson, in compliance with the SC judgement. Recently, RCom called off the sale of its telecom assets to Mukesh Ambani-controlled Reliance Jio Infocomm, citing failure to get approvals from lenders and the government. Ericsson, in 2017, had moved the apex court under Insolvency and Bankruptcy Code (IBC) against RCom alleging that the telecom company has not paid its dues of nearly Rs 1,500 crore after signing a seven-year deal in 2013 to operate and manage its nationwide network. In December 2017, RCom had signed a blockbuster deal with Jio for the sale of wireless spectrum, tower, fibre and media convergence nodes assets, the proceeds of which were to be used to pare its debt. However, owing to several litigations, the deal never took off. On Monday, the two groups called off the deal, citing delays in approvals from government and lenders.

Published at : 19 Mar 2019 12:09 PM (IST)

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