Canadian private investment firm Brookfield Infrastructure Partners has inked the second-biggest private equity deal ever in India by buying the telecom tower business of Reliance Communications Ltd (RCOM) for Rs 11,000 ($1.6 billion) in cash.
The two had signed a non-binding term sheet for the deal in October.
As per the agreement, RCOM’s telecom towers housed under Reliance Infratel Ltd will be demerged into a separate company that will be 100% owned and independently managed by Brookfield Infrastructure. This will create the second-largest independent and operator-neutral towers company in India.
RCOM will receive Class B non-voting shares in the new tower company, providing 49% future economic upside in the firm, based on certain conditions. It will also enjoy certain information and other rights, but will not be involved in the management and operations of the tower firm. Read More…