MTNL shareholders approve issuance of Rs 6,500 crore, land monetization, buildings
NEW DELHI: State property MTNL On Thursday, he said he received shareholder approval to raise up to Rs 6,500 million through the issuance of non-convertible bonds, as well as for the monetization of land and buildings.
During the extraordinary general meeting of Mahanagar Telephone Nigam Ltd (MTNL) which was held on Wednesday, 99.89 votes were cast in favor of the issuance of guaranteed, unsecured, listed, redeemable non-convertible debentures in the nature of bonds (NCDs), in one or more series/tranches, aggregating up to Rs 6,500 crore on private placement basis, MTNL said in a filing to BSE.
The company also said that the majority votes were cast in favor of the monetization of land and buildings as specified/identified by its board in accordance with the guidelines of the Department of Investment and Public Asset Management (DIPAM) and according to the reactivation plan of the company recently approved by the Union Cabinet.
He added that the majority votes were voted in favor of the monetization of the towers and fiber assets, including leasing, after considering market conditions with the objective of maximizing yields according to the company's revival plan, and non-cumulative preference shares redeemable non-cumulative on a private placement basis to the government for the payment of the cost of the 4G spectrum.
The government had earlier approved a Rs 69,000-crore revival package for BSNL and MTNL that included merging the two loss-making companies, monetising their assets and giving voluntary retirement scheme (VRS) to employees so that the combined entity turns profitable in two years.
The companies have already announced VRS schemes. As per official estimates, 78,569 employees of BSNL and 14,387 employees of MTNL have opted for VRS.