For sale of its tower assets and related infrastructure
Reliance Communications announced the signing of a non-binding Term Sheet with Tillman Global Holdings, LLC and TPG Asia, Inc. (TPG) in relation to the proposed acquisition of RCOM's nationwide tower assets and related infrastructure by Tillman and TPG.Under the Term Sheet, the specified assets are intended to be transferred from Reliance Infratel (RITL) on a going concern basis into a separate SPV, to be owned 100% by Tillman and TPG. RCOM will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business. RCOM intends to utilize the proceeds of the proposed transaction only to reduce its debt.
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.
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