RCOM-Brookfield tower deal approved by CCI

The Competition Commission of India (CCI) has approved Reliance Communications’ (RCOM) proposed sale of a 51 per cent stake in Reliance Infratel Limited to Canada-based Brookfield Infrastructure Group. In October 2016, RCOM had signed a non-binding term sheet agreement with Brookfield to sell the stake in Reliance Infratel. As per the agreement, RCOM will receive an upfront cash payment of Rs 110 billion from the transaction and will retain a 49 per cent stake in the business, which could be monetised later. Following the closure of the deal, RCOM’s tower assets will be transferred from Reliance Infratel to a separate special purpose vehicle (SPV) which will be owned by Brookfield.