RCOM tower sale encounters setbacks

19 Apr 2018

The planned sale of fibre and tower assets held by Reliance Communications’ (RCOM’s) infrastructure unit Reliance Infratel has run into further stumbling blocks this week as the courts look to resolve a dispute between RCOM and Infratel’s minority shareholders. The Economic Times reports that the Supreme Court stayed a National Company Law Appellate Tribunal (NCLAT) ruling that would have allowed the transaction to take place, and the NCLAT followed up by withdrawing its previous order. A group of minority shareholders led by HSBC Daisy Investment, is appealing against the sale, accusing RCOM of operational mismanagement and oppressing minority shareholders by arranging the sale without their consent. Earlier this month the NCLAT had ruled that the sale could go ahead, but the proceeds would be kept in an escrow account until the minority shareholders’ claim could be resolved.

India, Reliance Communications (RCOM), Reliance Infratel (RITL)