RCOM to sell towers in Rs 30k-cr deal

Marquee private investment firms Tillman Global Holdings and Texas Pacific Group, or TPG, have signed a non-binding pact to buy the tower and optic fibre assets from Reliance Communications (RCOM) and other institutional investors in a deal estimated at Rs 30,000 crore. Under the terms of the transaction, RCOM and the other minority investors will transfer the telecom infrastructure assets from Reliance Infratel to a special purpose vehicle owned by the two US-based investment firms Commodity Market Astrology Tips

Tillman, founded by Sanjiv Ahuja, an Indian origin telecom veteran, and TPG, an asset manager with a portfolio worth $74 billion, have time until January 15 to ratify the deal, which is subject to final due diligence and regulatory approvals. RCOM, a unit of the Anil Ambani-led Reliance Group, stated that there is no certainty at this stage that the discussions will result in a transaction.

The deal, if it fructifies, will give Tillman and TPG a major stake in the world's second biggest telecommunications market where demand for mobile phone masts will grow as cellular operators expand their 3G and 4G services. Reliance Infratel, with 45,000 towers, is the No. 3 player in the country, after Indus Towers and American Tower Corporation (ATC) that have 1.15 lakh and 56,000 mobile phone base stations respectively Jackpot Stocks Trading Tips

The Tillman & TPG-Reliance Infratel deal follows ATC's October agreement to buy 51% stake in Viom Networks for Rs 7,635 crore. The deal with Viom had catapulted ATC to the No. 2 position.

An RCOM statement said that Tillman and TPG will also consider buying the optic fibre assets in a separate transaction. RCOM owns 96% stake in Reliance Infratel, with the balance 4% held by George Soros' Quantum, New Silk Route, Galleon and HSBC, among others. The minority investors had invested $287 million in Reliance Infratel in 2007 Indian stock market astrology prediction

The Reliance Infratel sale will help RCOM cut its debt of Rs 39,900 crore significantly. Besides the tower and optic fibre assets, Tillman and TPG consortium will also take over the business' debt. RCOM, said a person familiar with the deal, will eventually have a debt of Rs 10,000 crore on its books. The country's fourth largest wireless service provider will continue to be the anchor tenant on the towers transferred. In 2013, RCOM had agreed to share its towers with the Mukesh Ambani-led Reliance Jio for 15 years till 2030.

Tillman owns telecom infrastructure assets in more than 15 countries across Asia, Africa, Europe and North America. Ahuja, the former Orange CEO, has been collaborating with TPG to acquire tower assets in Asia including Apollo Towers Myanmar Himanshu Tiwari Astrologer Blog