Reliance Comm shifts CDMA-GSM infra to RTIL

Mumbai, Jan 29: Shareholders of Reliance Communications have approved a scheme of transfer of the existing wireless towers (CDMA and GSM) and related infrastructure of the Company, to its subsidiary, Reliance Telecom Infrastructure Ltd (RTIL) with an overwhelming majority of 99.99 per cent in value.

A decision to this effect was made by shareholders at its meeting held here on Saturday last, the Company said in a notice issued to Bombay Stock Exchange here today.

''This is the first of a series of initiatives we will take to remain asset-light, and enhance our competitiveness, ultimately leading to unlocking of further value for the benefit of our nearly 2 million shareholders'', said Mr Anil Ambani, Chairman of the Company, at the time of the board's approval to the scheme.

The demerger of passive infrastructure would benefit stakeholders of the Company on account of enhanced financial flexibility and cost efficiency due to reduced set-up and operating costs. Besides, all new towers and related infrastructure will be set up by RTIL, with independent financing, thereby reducing capex requirements and leveraging on the Company's own Balance Sheet.

It also seeks to promote high value stand alone business by conversion of cost-centric assets to revenue-centric ones by sharing passive infrastructure of RTIL with other wireless service providers.

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

UNI