RCOM confirmed in a statement that under the guidelines in term sheet, specified assets are intended to be transferred from Reliance Infratel (RTIL) into a separate SPV to be owned by Brookfield. They also highlighted that RCOM will be continuing as an anchor tenant on the tower assets, under a long term MSA, due to its integrated telecommunications business.

The statement also said that both RCOM and Brookfield are expecting a generous growth in tenancies based on increasing 4G offerings by all telecom operators, and also from the fast accelerating trends in data consumption that are expected to add to the startling growth in revenues and profitability for the tower business.

RCOM is also said to retain 49% stake in the business that will be monetized later, since the company expects value creation in the coming years that will help in significant growth tenancies owing to spread of 4G networks and fast increasing data consumption. They will also utilize Rs11000 crore to reduce debt and with the merger of RCOM’s wireless business with Aircel the debt is speculated to further reduce by another Rs. 14,000 crore. Hence, RCOM will reduce its debt by 60% from Rs. 42,000 crore to Rs. 17,000 crore, while RCom will continue 50 per cent stake in combined wireless business, and 49 per cent stake in Towers business.

RCOM is also creating a strategic plan to monetize its real estate to raise another Rs. 5,000 crore, and reduce overall debt by Rs 12,000 crore. “RCOM will emerge as one of the stronger telecom operators in the country post the strategic transactions that are under implementation,” said Paras Bothra, vice president of equity research at Ashika Stock Broking Ltd.

Reference link: http://economictimes.indiatimes.com/news/company/corporate-trends/reliance-com-signs-term-sheet-with-brookfield-to-sell-51-stake-in-tower-unit-for-rs-11000-cr/articleshow/54847398.cms