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RCom reworking $1.7 bn tower assets stake sale after failed Aircel deal

RCom, controlled by billionaire Anil Ambani, said on Sunday it is reassessing debt repayment options

Reuters  |  MUMBAI 


Communications is reworking a planned $1.7 billion stake sale in its tower assets after scrapping a proposed of its wireless arm with smaller rival Aircel, as its tumbled to an all-time low.

RCom, as the company is known, said it is in talks with Canada's Brookfield to sell all of its tower arm, instead of a 51 percent stake sale agreed previously, Business Standard and Hindu Business Line newspapers reported, citing Punit Garg, an executive director at the Indian telecoms carrier.

Brookfield, which was to pay 110 billion rupees ($1.7 billion) for the majority stake in RCom's tower arm, will revalue the assets after the Aircel deal was scrapped, Garg was quoted as saying by the newspapers.

RCom, controlled by billionaire Anil Ambani, said on Sunday it is reassessing repayment options after calling off the deal citing regulatory delays and legal uncertainties.

The embattled company was banking on the tower stake sale as well as the of its mobile services business to cut its load by 60 percent, or 250 billion rupees.

Brookfield declined to comment on the status of its tower deal with

With $6.8 billion of debt, is the most leveraged among listed Indian telcos. The company earlier this year won a temporary reprieve from creditor banks on its debt-servicing obligations citing the deals in the works.

in were trading at 17.95 rupees, down 6.5 percent, at 0400 GMT, after dropping to a low of 17.70 rupees. Indian markets were closed on Monday for a public holiday.

First Published: Tue, October 03 2017. 13:12 IST