After much delay Reliance Communications has finally found a buyer for
its tower assets, albeit for a partial stake.
On Friday Oct 14,2016, the telecom
company announced that it has done an agreement with Brookfield
Infrastructure Group to sell 51% stake in the tower unit for Rs. 11,000 crore by cash.
RCom will retain 49 % stake in the business to be monetised
later.
The company had earlier wanted to sell 100 per cent of the tower
assets.
It had been in talks with multiple players for the last five
years.
The sell-off is important for the company to bring down its
overall debt.
On Friday Oct 14,2016, RCom said the balance 49 % would be sold at a later
date as it expects considerable value creation in the next couple of
years in view of the likely significant growth in tenancies owing to
spread of 4G networks, and fast increasing data consumption. RCom will
utilise the entire Rs. 11,000 crore to reduce debt
Earlier, RCom had announced that it would spin off its mobile services
business into a separate entity and then merge it with Aircel.
The deal with Brookfields and the merger with Aircel will reduce RCom's debt from Rs. 42,000 crore to Rs. 17,000 crore. But the newly created wireless business will have a debt of over Rs. 30,000 crore from day one.
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