Reliance Communications to sell towers to Brookfied

towerAnil Ambani-promoted Reliance Communications has agreed to sell its tower assets to Brookfield Asset Management. RCOM will receive an upfront cash payment of Rs. 11,000 crore from the proposed transaction.

It has signed a non-binding Term Sheet with Brookfield Infrastructure Group in relation to RCOM’s nationwide tower assets and related infrastructure.

Under the Term Sheet, the specified assets are intended to be transferred from Reliance Infratel Ltd. (RITL) on a going concern basis into a separate SPV, to be owned by Brookfield.

RCOM will continue as an anchor tenant on the tower assets, under a long term agreement, for its integrated telecommunications business.

RCOM will also enjoy 49% future economic upside from the towers business, based on certain conditions, the company said.

The deal has come ahead of the merger of the company with Aircel Cellular. The sale and monetization of the tower assets was seen as a pre-requisite for the successful merger of the company with Maxis-owned Aircel.

The sale transaction will bring in much-needed cash to the balance sheet of the company and help reduce its high levels of debt.

RCOM and Brookfield expect considerable growth in tenancies based on increasing 4G offerings by all telecom operators, and the fast accelerating trends in data consumption, which are expected to contribute to significant growth in revenues and profitability for the towers business in the future.

RCOM and Brookfield also see several opportunities for consolidation in the towers industry in India that will further enhance growth and value creation in the future. RCOM intends to utilize the proceeds of the proposed transaction solely to reduce its debt.



Vodafone halves 4G data prices: 4 GB at 255 | 22 GB for 999 Vodafone has halved data prices, six months after cutting them by about 40%.Under the new 4G tariff announced today, customers will get 4 GB of data for Rs 250 and 22 GB for Rs 999.These are roughly half of the prevailing data rates in the market.The current data price in the market is 2 GB for Rs 250 and 10 GB for Rs 999.Vodafone is also off...
1GB LIMIT: Reliance Jio starts restoring full speed at end of day Reliance Jio, India's largest provider of wireless data, has modified its bandwidth limitation policy to restore full speed for the subscriber under its Happy New Year offer the next day.So far, a 4G subscriber who crossed the daily FUP limit of 4GB or 1GB had to wait for exactly 24 hours for Jio to lift the speed limits.Under the new policy, he ...
SUPERHOUR: The SECRET behind Vodafone’s Rs 16 offer It is no secret that India's second biggest telecom operator by revenue -- Vodafone -- is under threat from a rapidly growing No 3 -- Idea Cellular -- and an aggressive newcomer -- Reliance Jio.Though Idea is still behind the British firm when it comes to total revenue, Idea has already overtaken Vodafone as far as the data business is concerned, acc...
Tata Steel acquires Brahmani River Pellets at Rs 900 cr EV Tata Steel Limited said that it has executed definitive agreements to acquire 100% equity shares of Brahmani River Pellets Limited (BRPL) from Aryan Mining and Trading Corpn Private Limited (AMTC) and other companies in the Moorgate Industries Group (MIG).The transaction is based on an enterprise value of Rs. 900 crores plus closing adjustments and ...
Reliance Communications sells its towers to Brookfield for $1.6 bln Reliance Communications Ltd announced the signing of binding agreements with Brookfield Infrastructure for the sale of nationwide tower assets to Brookfield Infrastructure Partners LP and its institutional partners.RCOM will receive an upfront cash payment of Rs. 11,000 crore (US$ 1.6 billion).RCOM will also receive Class B non-voting shares in t...
Fitch downgrades Anil Ambani’s Reliance Communications over Aircel merger Fitch Ratings has downgraded India-based Reliance Communications Limited's long-term rating to 'B+' from 'BB-'."It is our view that Rcom's plans to demerge its wireless business into a 50:50 joint-venture and sell 51% of its tower business, Reliance Infratel Ltd (Infratel), will be negative for Rcom's creditors, even if receipts from the tower transactio...
CRASH: Bharti Airtel offers 6 GB at Rs 147 per month Hit by competition from Reliance Jio, Bharti Airtel, India's largest telecom company, is offering a whopping 6 GB of 4G data for Rs 147 with a validity of 28 days.The offer is being rolled out only to prepaid users, and can be seen only in the 'only for you' deals section of Airtel's recharge app or website. As it is a targeted offer, it may not be ava...
BSNL matches Airtel, Idea with 339 unlimited voice + 1GB offer Bharat Sanchar Nigam Ltd has unveiled a new unlimited call plan, matching bigger rivals such as Idea Cellular and Bharti Airtel.While Airtel and Idea offer unlimited calls to any network in India plus 1 GB of 4G data for Rs 345, BSNL is doing so with a new recharge of Rs 339. In addition, BSNL's offer is valid for all customers whether they use 2G, 3...
BSNL to launch Gigafiber plans, slash FTTH tariff to counter Reliance Jio BSNL CMD interacting with consumersState-owned Bharat Sanchar Nigam Ltd will launch Gigafiber plans with speeds of over 1,000 Mbps to counter the threat from players like Reliance Jio, the head of the organisation said today."We have a similar strategy and soon we are going to come up with Gigabit OFC connection to customers in select locations," BS...
Tata DoCoMo cuts 3G price to Rs 40/GB under unlimited call plan Following its Rs 300 plan to give 2 GB of data and unlimited calls to any network in India, Tata DoCoMo has now unveiled a new plan that adds 3 GB more at an extra cost of Rs 50.The pack offers five times as much data for Rs 350 as is given by competitors like Bharti Airtel and Idea Cellular.The new plan, currently being tested via an invite system, ...
Is Reliance Jio DTH launching today? No, say sources It was supposed to destroy the competition and unleash a new era in TV watching, but Reliance Jio's DTH service has so far failed to turn up on the rumored launch date of Dec 15.As we had predicted last month, the company had no plans of launching any DTH service, and did not tie up with any satellite provider for leasing transponder capacity. Our checks...
Cipla redraws Iran plans with new agreement, to invest Rs 121 cr Cipla said its wholly owned subsidiary of the Company in Netherlands will set up a 75% joint venture with Ahran Tejarat Company for manufacturing and marketing of pharmaceutical products in Iran.An earlier agreement executed by the Company with the Iranian firm has been terminated.The total investment will be euro 16.875 million, which comes to about...
Aircel makes CALLS, DATA FREE at Rs 249 per month Aircel today started offering unlimited calls to any number in the country under two special recharge plans -- Rs 12 for one day and Rs 249 for 28 days.RC12 offers customers with Unlimited Local and STD calling across all networks with a validity of one day.Unlike earlier packs, the calls are not restricted to other Aircel users.However, it remai...
Airtel halves 4G data price to Rs 495/10GB; offers freebies to take on Reliance Jio Bharti Airtel cuts 4G data prices by halfOver the last two days, Bharti Airtel has quietly slashed its 4G pack prices to unprecedented levels in reaction to upcoming plans from Reliance Jio.According to the new data plans available to anyone who recharges using Airtel's online or app facility, the price of 10 GB of 4G data pack has been brought down...
Pokemon Go launched in India in association with Reliance Jio Pokemon Go, the virtual reality game where players have to 'catch' and 'train' creatures called Pokemons, has officially been launched in India, months after it first became available in markets such as the US.The India launch has been done in association with Reliance Jio, the 4g mobile operator from the Mukesh Ambani group."With this partnership, t...