RCom advances with arm receiving CCI approval for demerger of tower division

Reliance Communications Ltd. | Telecommunication - Service Provider | Telecom | BSE: 532712 | NSE: RCOM

23 Mar 2017 Evaluate

Reliance Communications (RCom) is currently trading at Rs. 37.95, up by 0.55 points or 1.47% from its previous closing of Rs. 37.40 on the BSE.

The scrip opened at Rs. 37.40 and has touched a high and low of Rs. 38.40 and Rs. 36.90 respectively. So far 9,95,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 60.45 on 28-Apr-2016 and a 52 week low of Rs. 30.65 on 25-Jan-2017.

Last one week high and low of the scrip stood at Rs. 39.70 and Rs. 36.90 respectively. The current market cap of the company is Rs. 9,458.00 crore.

The promoters holding in the company stood at 59.09%, while Institutions and Non-Institutions held 25.59% and 15.33% respectively.

The Competition Commission of India (CCI) has approved the proposed transaction involving the sale of the Tower Division of Reliance Infratel, a subsidiary of Reliance Communications, which is to be carried out pursuant to a demerger of the Tower Division to Towercom Infrastructure (Towerco). Upon the completion of the demerger, though a Scheme of Arrangement, and the completion of certain other conditions and approvals, Rapid Holdings 2, a company which is a part of the Brookfield Infrastructure Group will acquire 100% of Towercom Infrastructure. The Company has already filed an application with the National Company Law Tribunal (NCLT), Mumbai Bench, for approval of the said Scheme of Arrangement. Post closing, the Company will receive ‘B’ Class Non-voting shares in Towerco providing 49% future economic upside from the business based on certain conditions.

Reliance Communications is India's foremost and truly integrated telecommunications service provider. The Company has a customer base of nearly 95 million including over 2.6 million individual overseas retail customers. Reliance Communications corporate clientele includes over 39,000 Indian and multinational corporations including small and medium enterprises and over 290 global, regional and domestic carriers.