Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Science
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Find Cricket Statistics
Hindi
More
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Science
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / Investors decry RCom's plans
  • Business

    Investors decry RCom's plans

    Written by
    Supriya
    Edited by
    Gaurav Jeyaraman
    Last updated on Oct 17, 2016, 04:48 pm
    Investors decry RCom's plans
  • RCom's recent disclosure of a non binding term sheet with Brookfield Infrastructure for RCom's tower assets has drawn flak from investors.

    Despite RCom's assurances that the Aircel merger and the Brookfield tower deal would reduce debt by 60%, RCom shares have plunged 6%.

    According to the Brookfield deal, RCom "will enjoy 49% future economic upside from the towers business, based on certain conditions."

  • In this article
    Reliance Group's most recent deals Brookfield Group RCom aims to be debt-free by 2017 Reliance Communications sells its tower business Terms of the deal Valuation and deal status Investors decry RCom's plans
  • Details

    Reliance Group's most recent deals

    Reliance Group's most recent deals
    Credits:
  • A month ago, Reliance Communications and Aircel announced their merger creating the 4th largest telecom company in the country.

    Earlier this month, Anil Ambani owned, Reliance Group, again made the headlines for its joint venture with Dassault Aviation for landing a massive Rs. 30,000 crore defence contract.

    Two days ago, Zee announced its decision to acquire Reliance Broadcast Networks for around Rs. 1900 crore.

  • Information

    Brookfield Group

  • The proposed buyer of Reliance's mobile tower business, Brookfield Infrastructure Group, is a leading infrastructure group, based out of Canada. It is a global asset management company and has assets worth nearly $250 billion.

  • How

    RCom aims to be debt-free by 2017

    RCom aims to be debt-free by 2017
  • RCom, has set targets to be debt-free by end 2017 considering that RCom is the most indebted mobile-phone service company in India. Its debt is approximately Rs 42,000 crore.

    Proceeds of Rs. 11,000 crore from proposed sale of 51% stake in mobile-tower business, will be utilised to reduce RCom's debt burden.

    RCom is expected to monetize its real-estate to raise additional Rs. 5,000 crore.

  • 16 Oct 2016

    Reliance Communications sells its tower business

    Reliance Communications sells its tower business
    Credits:
  • Reliance Communications (RCom) has agreed to sell a majority stake in its mobile phone tower business.

    RCom will retain 49% and sell 51% of the stake to the Brookfield Infrastructure Group, a Canadian company, for Rs. 11,000 crore in cash.

    The restructuring at RCom is underway essentially to reduce the debt burden of the company.

    RCom is the most indebted amongst all mobile-service providers.

  • Details

    Terms of the deal

    Terms of the deal
  • According to the term sheet signed between RCom and Brookfield, RCom will retain 49% as significant growth is expected in telecom tower tenancies due to growth in 4G networks and rising data consumption.

    The 51% stake will be transferred to a company owned by Brookfield.

    RCom will not be expected to incur operational or capital expenditure to manage its tower business.

  • Information

    Valuation and deal status

  • RCom's mobile tower assets have been valued at over Rs. 21,500 crore. The proposed sale of the tower assets is subject to "definitive documentation, customary approvals and certain other terms and conditions." There is therefore no certainty that this deal will go through.

  • 17 Oct 2016

    Investors decry RCom's plans

    Investors decry RCom's plans
  • RCom's recent disclosure of a non binding term sheet with Brookfield Infrastructure for RCom's tower assets has drawn flak from investors.

    Despite RCom's assurances that the Aircel merger and the Brookfield tower deal would reduce debt by 60%, RCom shares have plunged 6%.

    According to the Brookfield deal, RCom "will enjoy 49% future economic upside from the towers business, based on certain conditions."

  • India
  • Anil Ambani
  • Reliance Communications
  • Reliance Group
  • Dassault Aviation
  •  
Latest News
  • Johnny Depp's defamation case hearing against Amber Heard delayed again
    Johnny Depp's defamation case hearing against Amber Heard delayed again
    Entertainment
  • Munawar Faruqui case: Co-accused Nalin Yadav, Sadakat Khan granted bail
    Munawar Faruqui case: Co-accused Nalin Yadav, Sadakat Khan granted bail
    India
  • India exits recession, GDP grows 0.4% for Q3 2020-21
    India exits recession, GDP grows 0.4% for Q3 2020-21
    Business
  • Facebook-Apple spat escalates: Facebook launches PR campaign defending targeted advertising
    Facebook-Apple spat escalates: Facebook launches PR campaign defending targeted advertising
    Business
  • Existing COVID-19 guidelines to continue till March 31: MHA
    Existing COVID-19 guidelines to continue till March 31: MHA
    India
Related Timelines
  • Had to sell jewelry to pay legal costs: Anil Ambani
    Had to sell jewelry to pay legal costs: Anil Ambani
    Business
Trending Topics
Bharti Airtel Mukesh Ambani Flipkart WhatsApp Reliance Jio OPPO Isha Ambani
Next News Article
Share
Cancel

Want to share it with your friends too?

Facebook Whatsapp Twitter Linkedin
Copied

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Science News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Bharti Airtel Mukesh Ambani Indian Premier League Samsung Flipkart Virat Kohli
Rohit Sharma Cricket News YouTube Hollywood News WhatsApp Bollywood News ISRO Yoga Honda Batman
Football News BMW Vaccine Reliance Jio OPPO Food News, Healthy Recipes Royal Challengers Bangalore Toyota Fashion Tips Farmers Protest
Mercedes Barcelona La Liga Isha Ambani India Vs England Cricket OnePlus Mobiles Android TV Smart TV Bharat Bandh Deadpool
Marvel Comics Avengers Neha Kakkar Premier League
About Us Privacy Policy Terms & Conditions Contact Us News Reviews News Archive Topics Archive Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2021