MUMBAI: In a new twist in the tale, Anil Ambani-led Reliance Communications (RCom) has entered into a binding Memorandum of Understanding with Delhi-based Veecon Media and Television for sale of its subsidiary Reliance BIG TV (RBTV), engaged in the business of Direct to Home (DTH) services across India.

RBTV operates DTH business under the Reliance Digital TV brand.

Pursuant to the transaction, Veecon will acquire the entire shareholding of RBTV with business on Ďas-is-where-isí basis, along with all existing trade liabilities and contingent liabilities.

The existing DTH license of RBTV will be renewed with the submission of the required Bank Guarantees with the ministry of information and broadcasting (MIB) by the buyer.

The transaction ensures that all existing 1.2 million customers of RBTV shall continue to enjoy uninterrupted services. It also ensures the continuity of employment for approximately 500 employees of RBTV.

The transaction will help reduce the liability of unsecured creditors, benefitting all stakeholders including lenders and shareholders of RCOM. The transaction is in consonance with the RCOMís stated objective to focus on B2B businesses of New RCom.

The successful culmination of the transaction is subject to the requisite approvals from licensors, regulatory authorities, and lenders of RCom.

Earlier, RCOM had announced that it will shut down its DTH business from 18 November due to the expiry of its DTH licence. It had even tied-up with Tata Sky for migration of its existing DTH subscribers.

Reliance Digital TV is the smallest among the six pay DTH platforms in the country with a measly 2% of 65.31 million active pay DTH subscribers, as on 30 June. Dish TV is the biggest DTH operator with 24% share followed by Tata Sky (23%), Airtel Digital TV (21%), Videocon d2h (20%).