RCom in non-binding pact with buyout firms to sell mobile tower business
04 Dec 2015
Reliance Communications Ltd (RCom), the country's fourth-largest wireless telecommunications carrier, has signed a non-binding pact with buyout firms Tillman Global Holdings LLC and TPG Capital Management to sell its mobile phone tower business.
The Anil Dhirubhai Ambani Group firm today announced the signing of a non-binding agreement with Tillman Global Holdings LLC and TPG Asia Inc for sale of RCom's nationwide tower assets and related infrastructure by Tillman and TPG.
Under the agreement, RCom will transfer the assets from Reliance Infratel Ltd (RITL) on a going concern basis into a separate SPV, to be owned 100 per cent 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 said the proceeds of the proposed transaction will be used 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 two sides have entered into an exclusivity agreement till 15 January 2016.
The proposed transaction is subject to final due diligence, definitive documentation, applicable regulatory and other approvals and certain other terms and conditions.
RCom said there can be no certainty that a transaction will result, adding that further announcements will be made at an appropriate stage.