RCOM approves demerger of tower business

New Delhi, Jan 28: The equity shareholders of Reliance Communications Ltd (RCOM) have approved a scheme of transfer of the company's existing wireless towers (CDMA and GSM) and related infrastructure to its subsidiary Reliance Telecom Infrastructure Ltd (RTIL) with an overwhelming majority of 99.99 per cent.

''This is the first of a series of initiatives we will be taking to remain asset-light, and enhance our competitiveness, ultimately leading to unlocking of further value for the benefit of our nearly two million shareholders,'' RCOM Chairman Anil Ambani said at the board's approval to the scheme yesterday.

The demerger of passive infrastructure would benefit the stakeholders of the company on account of enhanced financial flexibility and cost efficiency due to reduced set-up and operating costs.

All new towers and related infrastructure will be set up by RTIL, with independent financing, thereby reducing capex requirements and leveraging on RCOM's own balance sheet, a company statement said today.

Under the scheme of transfer, more than 12,000 towers shall be consolidated under RTIL.

UNI