GCX owner RCom ‘may sell 100% of tower infrastructure’
India’s Reliance Communications may try to sell 100% – rather than just 51% – of its tower company to a North American buyer, but it may have left it too late.
Reliance (RCom) this week dropped its plan to merge with rival mobile operator Aircel, and that may mean that its infrastructure business is less attractive to Brookfield Infrastructure Partners, according to commentators in India.
The Times of India’s Economic Times quotes a “person familiar with the matter” as saying Brookfield wants to acquire a tower business In India – but it is also looking at Vodafone’s Indian assets.
And, even if Brookfield maintains its interest in RCom’s Reliance Infratel, the North American investor may try to reduce the price.
“Expect renegotiations and a much lower valuations now that Aircel’s tenancies will not be factored in,” says the newspaper.
Punit Garg, president of RCom, told The Hindu Business Line that the company is open to discussing selling 100% of Reliance Infracom to Brookfield.
RCom, which owns Global Cloud Xchange, has debts of $6.8 billion and was trying to cut that through the merger with Aircel and by selling a stake its infrastructure.