Reliance Communications shares rise as it sells part of telecom tower business
As per the term sheet, the specified assets are intended to be transferred from Reliance Infratel Limited (RITL) on a going concern basis into a special purpose vehicle (SPV) to be owned by Brookfield.
Ani Ambani-led Reliance Communications (RCom) will sell 51% in its tower business to Brookfield Infrastructure Group for Rs 11,000 crore.
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 MSA, for its integrated telecommunications business, it said in a statement.
"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," the company said.
Shares of Reliance Communication on BSE, was trading at Rs 47.60 up by 1.93%.