RCOM is on announcement spree. The company today announced that the Competition Commission of India (CCI) has approved sale of 51% in its 100% subsidiary Reliance Infratel to Canada-based Brookfield.
The Canadian company has valued tower business at a value of Rs 22,000 crore. It will pay about Rs 11,000 crore to RCOM. This will go towards reducing debt of RCOM, which is to the tune of Rs 42,000 crore.
In a statement RCOM said that the transaction, which involves sale of the tower division of the Reliance Communications subsidiary, is to be carried out after its demerger with Towercom Infrastructure Private Limited (Towerco).
“Upon the completion of the demerger, though a Scheme of Arrangement, and the completion of certain other conditions and approvals, Rapid Holdings 2 Pte. Ltd., a company which is a part of the Brookfield Infrastructure Group will acquire 100% of Towercom Infrastructure Private Limited,” as per press release issued by the company.
In December 2016, RCOM announced selling 51% of its tower business to Canada-based Brookfield Group. Reliance Communication’s telecom towers will be demerged into a separate new company that will be fully owned and independently managed by Brookfield Infrastructure.
Brookfield Infrastructure is expected to give class B non-voting shares to RCom in the newly acquired business.