RCom joins hands with Tillman Global to sell its telecom towers

NEW DELHI:  Anil Ambani led-Reliance Communications (RCom) said that it has signed a non-binding Term Sheet with Tillman Global Holdings and private equity TPG to sell its nationwide tower assets.

Currently, the company has  45,000 telecom towers.

With this agreement, Anil Ambani led-company intends to utilize the proceeds of the proposed transaction only to reduce its debt.

Under the Term Sheet, the specified assets are intended to be transferred from Reliance Infratel Ltd. (RITL) on a going concern basis into a separate SPV, to be owned 100% by Tillman and TPG.

RCom will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business.

Sanjiv Ahuja-led Tillman Global and private equity TPG will also evaluate purchase of RCom’s extensive nationwide inter-city and intra-city optic fibre assets, in a separate and independent transaction.

The Parties have entered into an Exclusivity Agreement valid till January 15, 2016. The proposed Transaction is subject to final due diligence, definitive documentation, applicable regulatory and other approvals and certain other terms and conditions.

Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage