The Indian telco will transfer the assets to two US investment groups
Indian telecom operator Reliance Communications has reached an agreement to sell its stake in telecom tower company Reliance Infratel and its fiber assets to two private equity firms, according to local press reports.
The Indian telco inked a non-binding agreement with Tillman Global Holdings and Texas Pacific group for a total of 300 billion rupees ($4.5 billion). Under the terms of the deal, Reliance Communications and other minority investors will transfer the assets to a new entity owned by the two US-based investment groups.
According to the reports, the operation will require local regulatory approvals. The two buyers will have until Jan. 15 to ratify the proposed acquisition. The deal, which also includes Reliance Infratel’s debt, will allow the Indian telecoms firm to obtain fresh funds to reduce its debt levels.
Reliance Communications owns 96% of Reliance Infratel. Other minority and institutional investors including George Soros’ Quantum, NSR Partners, Galleon, HSBC Daisy Investment (Mauritius), Drawbridge Towers and Investment Partners B (Mauritius) own the remainder. These minority investors had invested $287 million in Reliance Infratel in 2007.
Reliance Infratel currently operates 45,000 telecommunications towers across India. Other telecom tower operators in the Asian nation include Indus Towers, ATC-Viom and Bharti Infratel.
In October 2015, American Tower reached an agreement to buy a 51% controlling stake at Indian telecom tower firm Viom Networks for 76 billion rupees.
True Move to launch LTE through the 1800 MHz band this week
In other APAC news, Thai mobile operator True Move expects to launch LTE services through the 1800 MHz band this week.
The new offering will complement the operator’s current 4G LTE service, which is being offered through spectrum in the 2.1 GHz band. True Move initially launched LTE services in Thailand in May 2013.
Rival mobile operator DTAC also offers commercial 4G LTE services in the Asian nation. DTAC had launched LTE services in May 2014 through spectrum in the 2.1GHz band. Last month, the telco launched LTE through the 1800MHz band in certain areas of capital Bangkok.
Meanwhile. AIS plans to launch commercial LTE services by mid-December. The telco had obtained 15 megahertz of spectrum in the 1800MHz band in a recent action.
