Reliance Communications to sell tower unit for Rs 11,000 crore

Reliance Communications (RCom) of the Anil Ambani group has signed binding agreements with Canada-based Brookfield Infrastructure and institutional partners to sell its tower business for an upfront cash payment of Rs 11,000 crore
●    The already-announced combination of RCom’s wireless business with Aircel, and the monetisation of the tower business, will together reduce RCom’s overall debt by Rs 31,000 crore ($ 4.6 billion), or nearly 70 per cent of existing debt.
●    RCom will also receive Class B non-voting shares in the new tower company, providing 49 per cent future economic upside in the towers business, based on certain conditions. 
●    RCom expects significant future value creation from the B Class shares, based on growth in tenancies arising from increasing 4G roll-out by all telecom operators and fast accelerating data consumption.
●    RCom shares rose by 6.85 per cent to Rs 37.45 on the BSE soon after the announcement.
●    Brookfield Infrastructure is an investment company.
●    Brookfield Infrastructure operates Canada's majority stake.
●    After American Tower Corp Brookfield is the second largest independent telecom tower company in India.