Reliance Communications (RCom), in a statement to NSE said that its board has approved a move to transfer optical fibre business division of the company to its subsidiary, Reliance Infratel. The transfer will be through a court-approved demerger of the unit at a fair value, said the company.

No additional equity shares are to be issued and no change is proposed to the capital structure of Reliance Communications, said a company statement.

According to RCom, the consolidation of the optical fibre division into this company reflects the global trend of segregating the telecommunication infrastructure business, leading to cost synergies and efficiencies.