Reliance Communications expects to reach an agreement to sell its towers to a consortium led by US private equity firm TPG within a fortnight, CEO Vinod Sawhny said. Since the start of the year, RCom has inked spectrum trading and sharing pacts with Reliance Jio, paid a fee to liberalise airwaves and continued work on a three-way merger with Sistema Shyam Teleservices and Aircel.
Reliance Communications (NSE:RCOM) expects to reach an agreement to sell its towers to a consortium led by US private equity firm TPG within a fortnight, CEO Vinod Sawhny has said.
Mumbai-based RCom entered into a non-binding agreement to sell its tower assets and related infrastructure to TPG and telecoms infrastructure firm Tillman Global Holdings (TGH), also US-based, last December.
On 15 January, the companies reportedly extended their exclusivity talks for a further 15 days to resolve outstanding issues.
Sawhny said during a conference call on RCom’s Q4 2015 results that a binding agreement is expected within two weeks.
Under the initial agreement, the proposed Rs215bn (US$3.17bn) deal would see the assets transferred from RCom’s tower unit Reliance Infratel on a going concern basis into a separate special purpose vehicle owned by TGH and TPG.
RCom would continue as an anchor tenant on the tower assets under a long-term managed services agreement.
The company intends to use the proceeds of the proposed sale to cut its debt pile, which had mounted to US$5.97bn by the end of December 2015.
TPG and Tillman will also look at buying RCom’s nationwide fibre optic assets in a separate transaction, the telco has said.
RCom has had a busy start to the year, also inking spectrum trading and sharing pacts with new mobile entrant Reliance Jio, paying Rs53.84bn (US$791.72m) to liberalise airwaves for these agreements and working toward a three-way merger with Sistema Shyam Teleservices and Aircel.