Reliance Communications (RCOM) has signed binding agreements with Brookfield Infrastructure Partners and its institutional partners to sell a 51 per cent stake in its tower business, Reliance Infratel, for Rs 110 billion. The transaction is subject to regulatory and other approvals. As per the terms of the deal, RCOM’s telecom towers will be demerged into a new company, Towercom Infrastructure, which will be wholly owned and independently managed by Brookfield Infrastructure. This will be the second-largest, independent, operator-neutral tower company in India. Further, RCOM will also receive Class B non-voting shares in the new tower company. RCOM will have access to certain information and other rights in the new company, but will not be involved directly or indirectly in its management and operations. Meanwhile, RCOM and Reliance Jio Infocomm Limited will continue as long-term tenants of the new tower company, along with other third-party telecom operators. RCOM will utilise the upfront cash payment to reduce its debt.