RCom To Finalize Three Deals By Mid-2017
Anil Ambani-led telecom company Reliance Communication (RCom) is looking forward to complete three proposed deals, which also includes a merger with Aircel, by mid-2017. RCom agreed to sell 51% stake in Reliance Infratel, the company’s tower unit, to Canada’s Brookfield Group for Rs 11,000 crores.Reportedly, the sale of the tower unit and a plan by RCom and Aircel to merge their...
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Anil Ambani-led telecom company Reliance Communication (RCom) is looking forward to complete three proposed deals, which also includes a merger with Aircel, by mid-2017.
RCom agreed to sell 51% stake in Reliance Infratel, the company’s tower unit, to Canada’s Brookfield Group for Rs 11,000 crores.
Reportedly, the sale of the tower unit and a plan by RCom and Aircel to merge their wireless businesses are expected to be completed by mid-2017. Moreover, the merger of RCom with Sistema Shyam TeleServices is expected to close by March end.
Co-CEO of RCom Gurdeep Singh said that “Consolidation is the only way forward in the industry. Reliance Communication is playing an upfront running role in the consolidation of the industry.”
Brookfield and Aircel transactions will help RCom reduce debt by 70% by 2018.
Punit Garg, head of strategy and regulatory affairs at RCom, said that litigation involving Aircel won’t have any impact on the merger process. According to Garg, “Everything is on track.”
Aircel risks the cancellation of its licences because representatives of its largest shareholder have not appeared in connection with a case filed by the Central Bureau of Investigation.
In December 2016, RCom had sold 51% of its tower business to Brookfield Group. The telecom towers will be demerged into a separate new entity that will be 100% owned and independently managed by Brookfield Group.
