Reliance Communications (RCom) has signed a binding agreement with Brookfield Infrastructure and its institutional partners to sell its tower business in the largest investment to date by any overseas financial investor in India’s infrastructure sector.
RCom will receive an upfront cash payment of US$1.6 billion on completion of the transaction, to be used to reduce the company’s debt. It will also receive class B non-voting shares in the new tower company.
RCom’s telecom towers will be demerged into a separate new company, which will be 100% owned and independently managed by Brookfield Infrastructure, thereby creating the second-largest independent and operator-neutral tower company in India.
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