Competition watchdog Competition Commission of India (CCI) has approved the Rs. 11,000 crore proposed transaction involving the sale of the tower division of Reliance Infratel Limited, a subsidiary of Reliance Communications Ltd (RCom) to Brookfield Infrastructure Group.
The Anil Ambani-led Reliance Communications last year agreed to sale its tower assets to Brookfield last year to help reduce its debt.
As per the terms of the deal, the tower division of Reliance Infratel will be demerged to Towercom Infrastructure Private Limited (Towerco) and Rapid Holdings 2 Pte. Ltd., a part of the Brookfield Infrastructure Group will acquire 100% of Towercom Infrastructure Private Limited.
The deal is however subject to completion of the demerger, though a scheme of arrangement, and the completion of certain other conditions and approvals, said a company statement adding that the company 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.
Reliance Communications shares on BSE closed up 1% at Rs 37.8 in a firm Mumbai market on Thursday, valuing the company at Rs 9408 crore.
