Reliance Communications on Thursday said that telecom towers held by Reliance Infratel will be demerged into Towercom Infrastructure, which will be wholly owned and independently managed by affiliates of Brookfield Infrastructure on completion.
The move comes a day after the Anil Ambani led telco signed a deal with Brookfield Group to sell a 51% stake in the telecom company’s tower unit, Reliance Infratel, for Rs 11,000 crore.
This new entity will be the second largest independent and operator-neutral towers company in India after Indus Towers.
The all cash deal signed on Wednesday will be used to reduce the firm’s debt. RCom’s previously announced wireless business merger with Aircel and the latest deal with Brookfield infrastructure will together reduce the company’s overall debt by Rs. 31,000 crore.
In November, RCom incorporated a new unit, Towercom Infrastructure (TIPL), which is an infrastructure company, indicating progress in the talks to sell controlling stake in its telecom tower subsidiary to Canada’s Brookfield.