RCom gets CCI approval for sale of towers to Brookfield

Reliance Communications on Thursday said that it has received approval from the Competition Commission of India (CCI) for the sale of the Tower Division of Reliance Infratel Limited to Brookfield Infrastructure Group.

rcom-aircel

The sale will be carried out pursuant to a demerger of the Tower Division to Towercom Infrastructure Private Limited (Towerco), which will be the second largest independent and operator-neutral towers company in India after Indus Towers.

Upon the completion of the demerger, though a Scheme of Arrangement and the conclusion of certain other conditions and approvals, Rapid Holdings 2 Pte. Ltd., a company which is a part of the Brookfield Infrastructure Group will acquire 100% of Towercom Infrastructure Private Limited.

RCom had last year inked a deal with Brookfield Group to sell a 51% stake in Reliance Infratel for Rs 11,000 crore.

RCom said that it has already filed an application with the National Company Law Tribunal (NCLT), Mumbai Bench, for approval of the said Scheme of Arrangement.  Post closing, the Company will receive ‘B’ Class Non-voting shares in Towerco providing 49% future economic upside from the business based on certain conditions, it said in a statement.

Separately, Nettle Infrastructure Investment Ltd will acquire 21.63 percent stake in Bharti Infratel from parent Bharti Airtel on or after March 27. Nettle Infrastructure, a wholly-owned subsidiary of Bharti Airtel, will buy 40 crore equity shares of Bharti Infratel from the parent for an estimated Rs 12,400 crore.

RCom is closing towards a merger with Aircel, which will make it as the third largest telecom network in India behind Vodafone-Idea merged entity and Bharti Airtel-Telenor merged entity. The merger is expected to be finished by October 2017. RCom also had a deal with MTS India and the merger between them is supposed to be completed by March 2017.

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

3
Leave a Reply

avatar
Photo and Image Files
 
 
 
3 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
0 Comment authors
Reliance Infratel Limited Receives Approval from Shareholders for Demerger of Tower Arm to Brookfield for Rs. 11,000 CroreRCom and Promoters of Aircel to Hold 50% Each in ‘Mergedco’ With Equal Representation on Board and CommitteesRCom Could Incur Losses of Up to Rs. 1,600 Crore and Rs. 2,250 Crore in Next Two Financial Years: Deutsche Bank Report Recent comment authors
newest oldest most voted
trackback

[…] the said Scheme at their meeting held on April 29, 2017, convened under the order of the NCLT. RCom has already received approval from Competition Commission of India (CCI) for the proposed Scheme of […]

trackback

[…] Securities and Exchange Board of India, BSE Limited, National Stock Exchange of India Limited, and Competition Commission of India for the said Scheme of […]

Recent Posts

Reliance Jio Offering 5 Prepaid Plans Without Daily Data Limit: Check Prices and Benefits

Reliance Jio did not revise its prepaid plans for more than a year now as the telco is unmatchable in...

These Are the 22 BSNL Prepaid Plans Which Now Limit Voice Calls to 250 Minutes per Day

BSNL is now following the footsteps of private telcos as the PSU is looking to generate some revenues. Earlier, we...

Realme Well-Positioned to Sell 15 Million Units This Year

Smartphone maker Realme on Tuesday said it is well-positioned to sell 15 million units to meet its target this year....