R-Com to sell tower assets to PE firms TPG, TGH

Independent estimates put asset value at around Rs 20,000-Rs 21,000 cr

Reliance Communication (R-Com) board today approved sale of its tower unit to private equity buyout group TPG Capital and Tillman Global Holdings (TGH).

Though the amount of deal was not disclosed by the company, independent estimates put the asset value at around Rs 20,000-Rs 21,000 crore.

The company signed a non-binding agreement with the combined entity today to sell assets of Reliance Infratel before January 15, 2016.

To carry forward the deal, R-Com will spin off a special purpose vehicle (SPV) to be owned completely by the combined entity for smooth transfer of assets from Reliance Infratel to the SPV.

Post the transfer of assets, R-Com will continue to remain as an anchor tenant on the tower assets, under a long term agreement, for its integrated telecommunications business, the company said in a statement to the exchanges.

Apart from the tower sale, Tillman and TPG are also considering to buy R-Com's nationwide inter-city and intra-city optic fibre assets in a separate transaction, the company said.