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Almost all private equity investors in Reliance Communication’s tower business have given their approval to the asset sale to Brookfield.
According to a source close to the development, private equity investors hold 4.26 per cent stake in the tower arm, Reliance Infratel. The investors include NSR Partners, HSBC Daisy Investments (Mauritius), George Soros’ Quantum Funds, Galleon and Drawbridge Towers.
Under the agreement, Brookfield will pay RCom upfront cash of ₹11,000 crore for 51 per cent stake in the tower business. RCom will retain 49 per cent economic upside in the business, which may be monetised later. Reliance will utilise the entire ₹11,000 crore to reduce debt.
Separately, RCom’s wireless business is being merged with Aircel. These two transactions, put together, will reduce the firm’s debt from ₹45,000 crore to ₹20,000 crore. RCom has promised its lenders that both these deals will be done by September. The lenders have agreed to go on a standstill mode till December.
The firm is also monetising its real estate to raise another ₹10,000 crore. This includes Reliance Center Delhi and Navi Mumbai’s DAKC property. The Delhi property is valued at ₹700-800 crore. The sale/co-development of the two properties is being managed by leading real estate consultancy JLL .
RCom declined to comment for this story.
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