RCom says still talking to Brookfield, others to sell towers

Reliance Communications said it is in talks with several parties, including Brookfield Asset Management, to sell its tower assets.

“The Company is renegotiating the tower transactions with all the
interested parties including Brookfield Infrastructure Group,” it said.

The clarification comes after reports that Brookfield had withdrawn from the tower deal completely sent RCom’s shares plunging 6% on Monday.

RCom denied that the Canadian investment firm had backed off completely, and said talks were on to see if a new deal can be agreed on.

RCom announced a month ago that its merger with Aircel will not happen, and therefore its deal with Brookfield cannot be implemented in the form it was designed.

The company’s shares had declined by about 7% on the Oct 1 announcement too.

In its statement today, RCom reiterated that the facts on the ground had not changed since it made that statement on Oct 1.

“The deal with Brookfield Infrastructure Group for tower transaction was condition precedent based on the demerger of wireless division of the Company with Aircel Limited, which was called off by the Company and Aircel on mutual consent on 1st October 2017,” it said.

Brookfield, on Nov 3, told investors that its previously announced acquisition terms with RCom had become unworkable.

“The merger will not proceed and therefore our transaction as previously announced will not proceed either. However, we continue to monitor the evolving situation to determine if revised terms can be agreed upon,” it said.