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RCom jumps on inking term sheet with Brookfield for sale of telecom towers business

14 Oct 2016 Evaluate

Reliance Communications is currently trading at Rs. 47.65, up by 0.95 points or 2.03 % from its previous closing of Rs. 46.70 on the BSE.

The scrip opened at Rs. 46.70 and has touched a high and low of Rs. 48.40 and Rs. 46.20 respectively. So far 1502030 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 91.80 on 01-Jan-2016 and a 52 week low of Rs. 42.10 on 29-Sep-2016.

Last one week high and low of the scrip stood at Rs. 48.45 and Rs. 46.20 respectively. The current market cap of the company is Rs. 11810.21 crore.

The promoters holding in the company stood at 59.09%, while Institutions and Non-Institutions held 25.57% and 15.34% respectively.

Reliance Communications (RCom) has signed non-binding term sheet with Brookfield Infrastructure Group (Brookfield) in relation to the proposed acquisition of RCom’s nationwide tower assets and related infrastructure by Brookfield. 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 by Brookfield.

RCom will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business and the company will receive an upfront cash payment of Rs 11,000 crore from the proposed transaction. It will also enjoy 49% future economic upside from the towers business, based on certain conditions.

Both the entities are expecting considerable growth in tenancies based on increasing 4G offerings by all telecom operators, and the fast accelerating trends in data consumption, which are expected to contribute to significant growth in revenues and profitability for the towers business in the future.

RCom and Brookfield also see several opportunities for consolidation in the towers industry in India that will further enhance growth and value creation in the future. RCom intends to utilize the proceeds of the proposed transaction solely to reduce its debt.

Reliance Comm Share Price

1.03 -0.02 (-1.90%)
20-Apr-2026 12:56 View Price Chart
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