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BRIEF-Reliance Communications signs agreements with Brookfield Infrastructure for sale of towers business
December 21, 2016 / 7:18 AM / 9 months ago

BRIEF-Reliance Communications signs agreements with Brookfield Infrastructure for sale of towers business

Dec 21 (Reuters) - Reliance Communications Ltd

* Tower business to be demerged into a separate company to be 100% owned and independently managed by Brookfield Infrastructure

* RCom to also receive ‘B’ class non voting shares in towerco providing 49% future economic upside from the business

* RCom will continue to hold 50% stake in Aircel JV and 49% upside in towers business to be monetised at appropriate time

* Reliance Communications signs binding agreements with Brookfield Infrastructure and institutional partners for sale of towers business

* Says RCom to receive upfront cash payment of 110 billion rupees (US$ 1.6 billion)

* Says RCom and RJio to continue as major long term tenants

* Says RCom to utilise cash 110 billion rupees solely to reduce debt

* RCom expects significant future value creation from the B class shares

* RCom to enjoy certain information and other rights, but will not be involved directly or indirectly in management and operations of new co Source text: bit.ly/2hpMymz Further company coverage:

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