US-based Brookfield Asset Management emerged as serious bidder for Reliance Infratel: Report

By July 10th, 2016 AT 9:26 PM

Brookfield Asset Management, a US-based private equity firm, has reportedly emerged as a serious bidder to buy Anil Ambani-led Reliance Communications’ stake in its tower unit, Reliance Infratel, following Sanjiv Ahuja-led Tillman Global Holdings’ failure to find a suitable financier for the telco’s tower assets, Economic Times reported citing multiple sources.

mobile-tower

Reliance Infratel is 96 per cent owned by RCom, while minority and institutional investors such as George Soros’ Quantum (M), NSR Partners, Galleon, HSBC Daisy Investment (Mauritius), Drawbridge Towers, Investment Partners B (Mauritius) own the remainder. The minority partners are likely to exit with any sale of RCom’s shares in Infratel.

The report said that the talks with Brookfield will progress only after RCom wraps up its merger with Aircel, which is expected to take place in the next few weeks. Last December, RCom announced that the TPG Capital and Global Holdings had made a non-binding pact to buy its tower assets. TPG Capital had valued RCom’s tower asserts well below the Rs21,500 crore initially discussed, which in turn prompted Tillman Global o look for other potential financiers, the report said.

The publication reported that Brookfield has valued RCom’s towers at roughly Rs15,000 crore, which is well below the Rs21,000 crore-plus valuation that the telco is seeking.

The tower sale could be concluded in four-to-five weeks after the RCom-Aircel merger once there is agreement on valuation. “Actual valuation of RCom’s towers can be arrived at only after the telco’s merger with Aircel, and once suitable due diligence is conducted to identify potential overlaps / redundancies in the merged entity’s tower portfolio,” a source was quoted as saying.

RCom, the country’s fourth-largest telco, has been seeking to reduce its debt, which is estimated to be around Rs 42,000 crore. The report also said that the Anil Ambani-owned telco will shortly ask Ericsson, its pan-India managed services partner, to map potential overlaps in the combined tower portfolio of RCom and Aircel, based on current traffic and expected growth levels.

The RCom-Aircel merged entity may add 25,000 new sites in the first year itself, the report added.

Read more on:

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

guest
0 Comments
Inline Feedbacks
View all comments

Recent Posts

Samsung Might Ditch the Galaxy Note 21 Series Next Year

South Korean smartphone company Samsung will likely ditch the Galaxy Note 21 series next year. Ever since the Galaxy Note...

Redmi Note 9 5G Series Might Launch on November 24 as Redmi Note 10 5G Globally

Redmi Note 9 5G series is tipped to launch on November 24, 2020, in China. According to an online tipster,...

Realme X7 Series to Launch in India Soon, All You Should Know

Realme, one of the fastest-growing smartphones brands in the country, is going to launch the new X7 series in India....