Reliance Infratel gets shareholders nod for demerger of tower division

Our Bureau Mumbai | Updated on January 11, 2018 Published on May 02, 2017

Reliance Infratel Ltd, a subsidiary of Reliance Communications (RCom), received shareholders’ approval for the demerger of the tower division of the RITL into Towercom Infrastructure Private Ltd (TIPL).

The shareholders’ approval came in with a 98 per cent majority at their meeting convened on April 29, 2017, RCom said in a statement.

Upon the completion of the demerger, through a merger scheme, Rapid Holdings 2 Pte Ltd, a Brookfield Infrastructure Group company will acquire TIPL. This will create the second largest independent and operator-neutral tower company in India.

The shareholders of TIPL have also approved the said scheme at their meeting held on April 29, convened under the order of the National Company Law Tribunal.

The company has already received approval from Competition Commission of India for the proposed Scheme of Arrangement.

The company’s telecom towers demerged into TIPL will be 100 per cent owned and independently managed by Brookfield Infrastructure.

Upon the Scheme becoming effective, RCom will receive an upfront cash payment of Rs 11,000 crore ($1.7 billion), which will be solely used to reduce its debt. The already announced combination of RCom’s wireless business with Aircel, and the monetisation of the Tower business, will together reduce RCom’s overall debt by Rs 31,000 crore ($4.8 billion), or nearly 70 per cent of existing debt.

Published on May 02, 2017

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.