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RCOM plans to sell tower assets to Brookfield for Rs 11,000 crore

IANS  |  Mumbai 

Industrialist Anil Ambani-led Communications has signed a "non-binding term sheet" with Brookfield Infrastructure Group, through which the latter would acquire all the tower assets of RCOM for an upfront cash payment of Rs 11,000 crore, a company statement said here on Friday.

Communication will then become a tenant for the purpose of using the towers for its integrated telecom business.

"Communications (RCOM) today announced the signing of a non-binding Term Sheet with Brookfield Infrastructure Group in relation to the proposed acquisition of RCOM's nationwide tower assets and related infrastructure by Brookfield," the statement said.

"RCOM will also enjoy 49 per cent future economic upside from the towers business, based on certain conditions," it added. Brookfield is an infrastructure assets management company.

According to sources, this is the largest-ever foreign direct investment coming into India in the infrastructure sector.

Under the Term Sheet, the specified assets are intended to be transferred from Infratel on a going concern basis into a separate special purpose vehicle, to be owned by Brookfield. RCOM will continue as an anchor tenant on the tower assets, under a long term master services agreement, for its integrated telecommunications business.

"RCOM and Brookfield expect considerable growth in tenancies based on increasing 4G offerings by all telecom operators, and the fast accelerating trends in data consumption, which are expected to contribute to significant growth in revenues and profitability for the towers business in the future," the statement said.

Both the companies also see several 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."

The statement added: "The proposed transaction is subject to definitive documentation, customary approvals and certain other terms and conditions. Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage."

--IANS

ag/vt

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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RCOM plans to sell tower assets to Brookfield for Rs 11,000 crore

Industrialist Anil Ambani-led Reliance Communications has signed a "non-binding term sheet" with Brookfield Infrastructure Group, through which the latter would acquire all the tower assets of RCOM for an upfront cash payment of Rs 11,000 crore, a company statement said here on Friday.

Industrialist Anil Ambani-led Communications has signed a "non-binding term sheet" with Brookfield Infrastructure Group, through which the latter would acquire all the tower assets of RCOM for an upfront cash payment of Rs 11,000 crore, a company statement said here on Friday.

Communication will then become a tenant for the purpose of using the towers for its integrated telecom business.

"Communications (RCOM) today announced the signing of a non-binding Term Sheet with Brookfield Infrastructure Group in relation to the proposed acquisition of RCOM's nationwide tower assets and related infrastructure by Brookfield," the statement said.

"RCOM will also enjoy 49 per cent future economic upside from the towers business, based on certain conditions," it added. Brookfield is an infrastructure assets management company.

According to sources, this is the largest-ever foreign direct investment coming into India in the infrastructure sector.

Under the Term Sheet, the specified assets are intended to be transferred from Infratel on a going concern basis into a separate special purpose vehicle, to be owned by Brookfield. RCOM will continue as an anchor tenant on the tower assets, under a long term master services agreement, for its integrated telecommunications business.

"RCOM and Brookfield expect considerable growth in tenancies based on increasing 4G offerings by all telecom operators, and the fast accelerating trends in data consumption, which are expected to contribute to significant growth in revenues and profitability for the towers business in the future," the statement said.

Both the companies also see several 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."

The statement added: "The proposed transaction is subject to definitive documentation, customary approvals and certain other terms and conditions. Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage."

--IANS

ag/vt

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

RCOM plans to sell tower assets to Brookfield for Rs 11,000 crore

Industrialist Anil Ambani-led Communications has signed a "non-binding term sheet" with Brookfield Infrastructure Group, through which the latter would acquire all the tower assets of RCOM for an upfront cash payment of Rs 11,000 crore, a company statement said here on Friday.

Communication will then become a tenant for the purpose of using the towers for its integrated telecom business.

"Communications (RCOM) today announced the signing of a non-binding Term Sheet with Brookfield Infrastructure Group in relation to the proposed acquisition of RCOM's nationwide tower assets and related infrastructure by Brookfield," the statement said.

"RCOM will also enjoy 49 per cent future economic upside from the towers business, based on certain conditions," it added. Brookfield is an infrastructure assets management company.

According to sources, this is the largest-ever foreign direct investment coming into India in the infrastructure sector.

Under the Term Sheet, the specified assets are intended to be transferred from Infratel on a going concern basis into a separate special purpose vehicle, to be owned by Brookfield. RCOM will continue as an anchor tenant on the tower assets, under a long term master services agreement, for its integrated telecommunications business.

"RCOM and Brookfield expect considerable growth in tenancies based on increasing 4G offerings by all telecom operators, and the fast accelerating trends in data consumption, which are expected to contribute to significant growth in revenues and profitability for the towers business in the future," the statement said.

Both the companies also see several 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."

The statement added: "The proposed transaction is subject to definitive documentation, customary approvals and certain other terms and conditions. Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage."

--IANS

ag/vt

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

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