NEW DELHI: Brookfield Infrastructure Group will buy 51 per cent of the tower business of Reliance Communications Ltd. (RCOM) for Rs. 11, 000 crore.
It is expected, that a considerable growth in tenancies based on increasing 4G offerings by all telecom operators, and the fast accelerating trends in data consumption, are expected to contribute to significant growth in revenues and profitability for the towers business in the future
The assets of RCOM will be transferred from Reliance Infratel Ltd. (RITL) to form a separate special purpose vehicle (SPV) to be owned by Brookfield.
RCOM will continue as an anchor tenant on the tower assets, under a long term agreement, for its integrated telecommunications business.. RCOM will also enjoy 49% future economic upside from the towers business, based on certain conditions.
Both the companies will also explore 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.