Indian mobile operator Reliance Communications (RCom) has signed a non-binding agreement to sell its telecom towers to Tillman Global Holdings and private equity buyout group TPG Asia. Tillman and TPG will acquire RCom’s tower assets and related infrastructure. The specified assets are intended to be transferred from Reliance Infratel into a separate special purpose vehicle that will be owned 100 percent by Tillman and TPG. RCom plans to use the proceeds of the proposed transaction to reduce its debt.
RCom will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business. Tillman and TPG will also evaluate the acquisition of RCom’s nationwide inter-city and intra-city optic fibre assets, in a separate and independent transaction.
The completion of the transaction is subject to final due diligence, definitive documentation, applicable regulatory and other approvals and certain other terms and conditions.
