RCOM signs non-binding Term Sheet with Tillman Global Holdings and TPG

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

04 Dec 2015 Evaluate

Reliance Communications (RCOM) has signed a non-binding Term Sheet with Tillman Global Holdings, LLC and TPG Asia (TPG) in relation to the proposed acquisition of RCOM’s nationwide tower assets and related infrastructure by Tillman and TPG.

Under the Term Sheet, the specified assets are intended to be transferred from Reliance Infratel (RITL) on a going concern basis into a separate SPV, to be owned 100% by Tillman and TPG. RCOM will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business. RCOM intends to utilize the proceeds of the proposed transaction only to reduce its debt. Tillman and TPG will also evaluate purchase of RCOM’s extensive nationwide inter-city and intra-city optic fibre assets, in a separate and independent transaction.

The parties have entered into an exclusivity agreement valid till January 15, 2016. The proposed Transaction is subject to final due diligence, definitive documentation, applicable regulatory and other approvals and certain other terms and conditions. Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage.

RCom is India’s foremost and truly integrated telecommunications service provider. The company ranks among the Top 4 Telecom companies in the world by number of customers in a single country.