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RCOM signs non-binding pact to sell mobile towers

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IANS New Delhi
Last Updated : Dec 04 2015 | 4:42 PM IST

Industrialist Anil Ambani-led Reliance Communications on Friday announced the signing of a non-binding agreement with Tillman Global Holdings and TPG Asia to sell its nationwide tower assets and related infrastructure.

Under the agreement, the specified assets are intended to be transferred from Reliance Infratel on a going concern basis into a separate special purpose vehicle, to be owned 100 percent by Tillman and TPG, the statement said.

Though the company did not disclose the deal amount, but earlier in 2013, Reliance Jio had entered into an agreement with RCOM for sharing its extensive inter-city and intra-city infrastructure of nearly 520,000 km of optic fiber pairs, besides 45,000 towers. The aggregate value of the deal was pegged at Rs.12,000 crore (nearly $6 billion).

"RCOM will continue as an anchor tenant on the tower assets, under a long term MSA (Master Service Agreement), for its integrated telecommunications business. RCOM intends to utilise the proceeds of the proposed transaction only to reduce its debt," it said.

Tillman and TPG will also evaluate purchase of RCOM's extensive nationwide inter-city and intra-city optic fibre assets, in a separate and independent transaction.

"The parties have entered into an exclusivity agreement valid till January 15, 2016. The proposed transaction is subject to final due diligence, definitive documentation, applicable regulatory and other approvals and certain other terms and conditions," the statement said

"Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage," it added.

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First Published: Dec 04 2015 | 4:30 PM IST

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