RCom withdraws tower spin-off plan

Reliance Communications reported on Wednesday that it had applied to a tribunal to withdraw the plan to spin-off its towers business, as a first step towards renegotiating the deal after ending plans to merge its wireless business with Aircel, reported a leading news agency.

Oct 05, 2017 09:10 IST India Infoline News Service

Reliance Communications reported on Wednesday that it had applied to a tribunal to withdraw the plan to spin-off its towers business, as a first step towards renegotiating the deal after ending plans to merge its wireless business with Aircel, reported a leading news agency.
 
As part of plans to cut its heavy debt load, the company had agreed to sell a 51% stake in the tower arm to Canada's Brookfield for Rs 110 billion. It had also planned to combine its wireless business with that of rival Aircel.
 
Earlier, RCom and Aircel had mutually agreed to scrap merger talks which meant that the terms of the tower deal also need to be reworked. RCom was in talks with the Canadian company to sell all of the tower units. Brookfield has yet to comment on the fate of the tower deal. The deal shall, in due course, be amended and refiled, RCom said in a statement on Wednesday.
 
The telecoms company, controlled by Anil Ambani, had been offered a temporary reprieve from its lender on its debt obligations after it had outlined plans to cut its $6.7 billion debt load by about 60% through the Brookfield and Aircel transactions.

Related Story