RCom creates new infra company Towercom

New Delhi: Telecom operator Reliance Communications, which is in the process of hiving off its mobile tower arm, on November 17 said it has created a subsidiary, Towercom Infrastructure.

"... the company incorporated a new subsidiary named Towercom Infrastructure Private Limited on November 17, 2016 having a registered office in Mumbai," RCom said in a BSE filing.

Towercom has subscribed 95 per cent share capital, which is 9,500 shares of Rs 10 each, the filing said. RCom has announced the sale of 51 per cent stake in its telecom tower business to Canada-based Brookfield Infrastructure Group for an upfront cash payment of Rs 11,000 crore.

It plans to utilise the sale proceeds to retire debt. RCom has signed a 'non-binding term sheet' with Brookfield Infrastructure Group for the proposed sale of tower assets and the specified assets are intended to be transferred from Reliance Infratel 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 (master service agreement) for its integrated telecommunication business. The proposed transaction is subject to definitive documentation and customary approvals, it said. The stock of RCom closed at Rs 38.4 today, down by 0.26 per cent against its previous close on BSE.