RCom had said it will utilise the sale proceeds entirely to reduce debt.
New Delhi: The Competition Commission of India has approved the proposed sale of the tower division of Reliance Communications' subsidiary, Reliance Infratel, to Canada-based Brookfield Infrastructure Group.
"The Competition Commission of India (CCI) has approved the proposed transaction involving the sale of the tower division of Reliance Infratel Limited, a subsidiary of Reliance Communications Ltd., which is to be carried out pursuant to a demerger of the tower division to Towercom Infrastructure Private Limited (Towerco)," Reliance Communications said in a statement.
Upon completion of the demerger and certain other conditions and approvals, Rapid Holdings 2 Pte. Ltd., a company which is a part of the Brookfield Infrastructure Group, will acquire 100 per cent of Towercom Infrastructure, it added. RCom said it 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 per cent future economic upside from the business based on certain conditions," it added.
In December last year, debt-laden Reliance Communications had inked a binding agreement to sell stake in its tower business to Canada-based Brookfield Infrastructure and its institutional partners for Rs 11,000 crore.
The all-cash deal represents the largest-ever investment by an overseas financial investor in the infrastructure sector in India. RCom had said it will utilise the sale proceeds entirely to reduce debt.