Reuters logo
10 months ago
BRIEF-Reliance Communications, Brookfield Infra sign term sheet for sale of telecom towers business
October 14, 2016 / 6:26 AM / 10 months ago

BRIEF-Reliance Communications, Brookfield Infra sign term sheet for sale of telecom towers business

Oct 14 (Reuters) - Reliance Communications Ltd

* Reliance Communications signs term sheet with Brookfield for sale of its telecom towers business

* RCom to utilise proceeds of sale solely to reduce debt

* RCom to receive upront cash payment of 110 billion rupees

* Proposed transaction subject to final documentation and customary approvals

* RCom to enjoy 49% future economic upside from the business, based on certain conditions

* Specified assets are to be transferred from reliance infratel on going concern basis into separate SPV, to be owned by Brookfield

* Co, Brookfield expect considerable growth in tenancies based on increased 4G offerings by all operators

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

* RCom and Brookfield also see several opportunities for consolidation in the towers industry in India Source text:bit.ly/2db9Zlw Further company coverage: (Bengaluru newsroom)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below