Reliance Communications sells its towers to Brookfield for $1.6 bln

Reliance Communications Ltd announced the signing of binding agreements with Brookfield Infrastructure for the sale of nationwide tower assets to Brookfield Infrastructure Partners LP and its institutional partners.

RCOM will receive an upfront cash payment of Rs. 11,000 crore (US$ 1.6 billion).

RCOM will also receive Class B non-voting shares in the new Tower company, providing 49% future economic upside in the towers business, based on certain conditions. However, the tower company will be 100% owned and independently managed by Brookfield Infrastructure, the company said.

RCOM expects significant future value creation from the B Class shares, based on growth in tenancies arising from increasing 4G rollout by all telecom operators and fast accelerating data consumption, the company added.

B Class shares usually carry no voting rights, but are eligible to get dividends.

RCOM said it will enjoy certain information and other rights, but will not be involved directly or indirectly in the management and operations of the new company.

The Anil Ambani flagship will continue to hold 50% stake in the wireless business combination with Aircel and the 49% future economic upside in the towers business, and will monetise these valuable assets at an appropriate time in the future to further substantially reduce its overall debt, it added.

The new tower company will be the second largest independent and operator-neutral tower provider in India.

“The transaction will represent the largest ever investment by any overseas financial investor in the infrastructure sector in India, and is a strong reflection of the confidence of the international investment community in the long term growth potential of the Indian economy,” the Anil Ambani group firm said.

RCOM and Reliance Jio will continue as major long term tenants of the new Tower company, along with other existing third party telecom operators.

RCOM will utilize the upfront cash payment of Rs. 11,000 crore (US$ 1.6 billion) solely to reduce its debt.

The already announced combination of RCOM’s wireless business with Aircel, and the monetization of the tower business, will together reduce RCOM’s overall debt by Rs. 31,000 crore (US$ 4.6 billion), or nearly 70% of existing debt, the company said.

The implementation of the spectrum trading and sharing arrangements with Reliance Jio to secure a nationwide 4G footprint with the deepest penetration and the most efficient 850 MHz band spectrum; the merger of the Indian telecom business of Sistema Shyam Telecom Ltd.; the combination of the wireless business with Aircel to derive operational and revenue synergies and achieve further industry consolidation; and the monetisation of the towers business in this transaction with Brookfield Infrastructure, are all important milestones in RCOM’s deleveraging and asset light strategy for future growth.

The transaction is subject to applicable approvals, including inter alia, shareholder and regulatory approvals, lenders’ consents, etc. Ambit, SBI Capital Markets and UBS Securities India are acting as financial advisers and Herbert Smith Freehills LLP and JSA Law are acting as legal advisers to RCOM for the transaction.


Bharti Airtel buys Telenor India In a surprise announcement, Bharti Airtel said it was taking over Telenor India, marking the first such transaction since Idea took over Spice Telecom several years ago.Typically, companies in Indian telecom sector sell only assets, such as spectrum, and never the whole unit,...
India Oil, BPCL, HPCL merger will reduce wastage of resources- Fitch A proposed merger of Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp will reduce inefficiencies across the sector and result in enormous savings, ratings agency Fitch said.It would also create an entity that is better placed to compete globally for resourc...
Wipro buys InfoSERVER, a Brazilian IT outsourcing company Weeks after acquiring Appirio, Wipro is at it again. This time, it is buying InfoSERVER, an IT services provider focused on the Brazilian market, for $8.7 Mn (Rs 60 cr). Two-decade old InfoSERVER provides custom application development and software deployment services, th...
Idea Cellular – Vodafone merger announcement soon? Idea Spectrum HoldingIdea Cellular has put off the trimonthly meeting of its board of directors scheduled to take place tomorrow, raising speculation that it may soon announce a merger or deal with Vodafone India.The meeting was supposed to take on-board results  of the ...
Tata Steel acquires Brahmani River Pellets at Rs 900 cr EV Tata Steel Limited said that it has executed definitive agreements to acquire 100% equity shares of Brahmani River Pellets Limited (BRPL) from Aryan Mining and Trading Corpn Private Limited (AMTC) and other companies in the Moorgate Industries Group (MIG).The transaction...
Fitch downgrades Anil Ambani’s Reliance Communications over Aircel merger Fitch Ratings has downgraded India-based Reliance Communications Limited's long-term rating to 'B+' from 'BB-'."It is our view that Rcom's plans to demerge its wireless business into a 50:50 joint-venture and sell 51% of its tower business, Reliance Infratel Ltd (Infratel), w...
Cipla redraws Iran plans with new agreement, to invest Rs 121 cr Cipla said its wholly owned subsidiary of the Company in Netherlands will set up a 75% joint venture with Ahran Tejarat Company for manufacturing and marketing of pharmaceutical products in Iran.An earlier agreement executed by the Company with the Iranian firm has been termi...
Aircel makes CALLS, DATA FREE at Rs 249 per month Aircel today started offering unlimited calls to any number in the country under two special recharge plans -- Rs 12 for one day and Rs 249 for 28 days.RC12 offers customers with Unlimited Local and STD calling across all networks with a validity of one day.Unlike earlier...
Bharti Airtel offers unlimited calls at around Rs 200 per month to counter Jio Airtel 4G offers unlimited voice calls at 345/monthDays after Reliance Communications unveiled a plan that offers unlimited calls at Rs 150 per month, India's biggest telecom operator has come up with something very similar to take on both RCom, Reliance Jio and an upcoming ...
Anil Ambani’s Reliance Infra sells transmission assets to Adani Following on the heels of its announcement to sell its transmission assets to Adani Group, Reliance Infrastructure today said it has signed a share purchase agreement with Adani Transmission for the sale of 100% of its Western Region System Strengthening Scheme Transmission Asset...
RCom lost 23% of its active subscribers in five months, going by VLR data TRAI data has finally confirmed what we had first reported two months ago -- RCom lost the vast majority of its CDMA subscribers when it forced them to migrate to 4G five months ago.Out of around 101 mln RCom subscribers at the time, about 24 mln are estimated to have bee...
Anil Ambani Group sells 2 TV channels, 59 FM stations to Zee Subash Chandra's Zee Group is buying the general entertainment channels and FM radio business of the Anil Ambani group.Because of lock-in provisions, the acquisition of 59 FM radio licenses will be done in two stages.The FM channels are being broadcast under the brand “92...
Anil Ambani group sells Big Magic, Ganga to Zee Entertainment Zee Entertainment Enterprises said it is acquiring the General Entertainment Broadcasting Business of Reliance Big Broadcasting Private Limited, Big Magic Limited & Azalia Broadcast Private Limited, all part of Anil Ambani led Reliance Group.The TV Broadcasting business o...
No Income Tax on FCCB proceeds, SC rules on RCom The Supreme Court on Monday dismissed the petition filed by the Income-Tax Department against Reliance Communications on taxing of the proceeds of Foreign Currency Convertible Bonds (FCCBs), said the telecom operator.The Supreme Court order has quashed contingent tax liabilit...
MEGA DISRUPTION: RCom makes all VOICE calls FREE at 149 per month In what can only be called a highly disruptive move, Anil Ambani's Reliance Communications has made all voice calls in India free for those who recharge with a coupon of Rs 149 per month.The impact of the move will be greater than that of Reliance Jio's similar tariff, as thi...
Ahead of merger, RCom releases low-cost ISD app in India Reliance Communications, which will merge its wireless operations with Aircel in the coming months, has released its international calling app Reliance Global Call in India.Somewhat similar to the Jio4G Voice app, the app helps you make international calls using RCom's networ...
Bharti Airtel merges Bangladesh unit with Robi Axiata Bharti Airtel Limited announced the completion of the merger of its subsidiary Airtel Bangladesh with Robi Axiata Limited (Robi Axiata), a unit of Axiata Group Berhad. The merger was completed following the fulfilment of the condition precedents to the Agreement and filing of...
RCom’s voice subscribers fall 30% in one year on VLR count Anil Ambani Group's Reliance Communications has seen a sharp fall in its subscriber numbers after the migration of its CDMA network to LTE.According to the latest numbers released by the company, the total number of voice customers fell by 11.6% in the three months from June ...
Reliance Communications unveils ‘Unlimit’ Internet of Things offering Reliance Group on Tuesday launched its Internet-of-Things offering Unlimit.IoT is jargon for a connected world in which appliances and equipment are connected to the Internet and managed remotely.Reliance Communications had announced an IoT partnership Jasper Technologies...
RCom, Aircel to reveal post-merger plans tomorrow? Anil Ambani Group's Reliance Communications is all set to make a 'major announcement' in Mumbai tomorrow, the company said in an invite for journalists.Though the exact nature of the announcement was not revealed, it is being suggested that the company is likely to unveil som...
Future Retail to pay Rs 273 cr in stock for Heritage Foods’ retail biz Heritage Foods Ltd said it agreed to sell its food retail business to Future Retail Ltd in return for shares in the Kishore Biyani firm.The businesses covered by the deal are grocery and food retail, agricultural sourcing, processing and marketing, and bakery.As part of t...
RCom to rebrand Reliance Digital TV as Chois HD? Anil Ambani group's Reliance Digital DTH may be rebranded to 'Chois HD', according to a twitter user, who also tweeted some photographs of the upcoming brand.Reliance Communications' Reliance Digital is arguably the weakest candidate among the five private companies that co...
Reliance Communications to sell towers to Brookfied Anil Ambani-promoted Reliance Communications has agreed to sell its tower assets to Brookfield Asset Management. RCOM will receive an upfront cash payment of Rs. 11,000 crore from the proposed transaction.It has signed a non-binding Term Sheet with Brookfield Infrastructure ...
RCom gets Bombay High Court approval for MTS merger Reliance Communications said its merger with Sistema Shyam Teleservices has been approved by the Bombay High Court.The Anil Ambani company is merging with SSTL, which operates telecom services under the MTS brand in India.After the merger, RCom shareholders will hold 90% ...
Cognizant to help transform Future Group’s consumer business Cognizant said that it has entered into a partnership with Future Group, an Indian multi-brand retailer, to transform its consumer goods business, Future Consumer Limited (FCL), into a connected enterprise.“In an era where data, insights and supply chain intelligence are cruc...