CCI approves RCom's demerger of tower division

RCom said, “CCI has approved the proposed transaction involving the sale of the tower division of Reliance Infratel Limited, a subsidiary of RCom, which is to be carried out pursuant to a demerger of the tower division to Towercom Infrastructure Private Limited (Towerco)."

Rapid Holdings 2 Pte - a company which is a part of the Brookfield will acquire 100% of Towercom. Photo: Reuters

Reliance Communications on Thursday said that Competition Commission of India (CCI) has approved the company's proposal to sell tower division of Reliance Infratel to Brookfield Infrastructure Group for Rs 11,000 crore

RCom said, “CCI has approved the proposed transaction involving the sale of the tower division of Reliance Infratel Limited, a subsidiary of RCom, which is to be carried out pursuant to a demerger of the tower division to Towercom Infrastructure Private Limited (Towerco)."

On completion of demerger, Rapid Holdings 2 Pte - a company which is a part of the Brookfield will acquire 100% of Towercom.

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On October 14, 2016, Anil Ambani's RCom signed a non-binding term sheet with Brookfield for the proposed acquisition of RCom’s nationwide tower assets and related infrastructure.

RCom and Brookfield had said, "They 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."

Shares of RCom was trading at Rs 37.95 per piece on BSE, up 1.47%.

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