Reliance Infratel gets shareholders’ nod for tower unit’s merger with Brookfield Infrastructure
The company has already received approval from Competition Commission of India for the proposed scheme of arrangement.
“The company’s telecom towers demerged into TIPL will be 100 per cent owned and independently managed by Brookfield Infrastructure,” the statement added.
“Upon the Scheme becoming effective, RCOM will receive an upfront cash payment of Rs 11,000 crore ($1.7 billion), which will be solely used to reduce its debt. The already announced combination of RCOM’s wireless business with Aircel, and the monetisation of the tower business, will together reduce RCOM’s overall debt by Rs 31,000 crore ($ 4.8 billion), or nearly 70 per cent of existing debt,” the statement added.
The statement further said: “RCOM and Reliance Jio will continue as major long term tenants of the TIPL along with other existing third party telecom operators.”
A petition is filed with the National Company Law Tribunal, Mumbai Bench, for approval of the scheme, it added.