RCom to sell 51% stake in tower unit to Brookfield for Rs 11,000 crore

Sanjeeb Kumar Sahoo
New Update

NEW DELHI: Anil Ambani-led Reliance Communications (RCom) said that it has signed a non-binding term sheet with Canadian Brookfield Infrastructure Group (Brookfield) to sell a majority 51 per cent stake of its nationwide tower assets and related infrastructure for cash consideration of Rs. 11,000 crore.


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 by Brookfield.

"RCom will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business.RCom will receive an upfront cash payment of Rs. 11,000 crore from the proposed transaction. RCom will also enjoy 49% future economic upside from the towers business, based on certain conditions," the company said in a statement.

"RCom and Brookfield expect considerable growth in tenancies based on increasing 4G offerings by all telecom operators, and the fast accelerating trends in data consumption, which are expected to contribute to significant growth in revenues and profitability for the towers business in the future" it said.


RCom and Brookfield also see several opportunities for consolidation in the towers industry in India that will further enhance growth and value creation in the future.

RCom intends to utilize the proceeds of the proposed transaction solely to reduce its debt.

The proposed Transaction is subject to definitive documentation, customary 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.

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