RCOM reaches settlement with Infratel stakeholders

Reliance Infratel, the tower arm of Reliance Communications (RCOM), has reached an agreement with its minority stakeholders, removing one of the barriers to the delayed sale of the cellco’s assets to Reliance Jio Infocomm (Jio), the Economic Times reports. In a notice to the Bombay Stock Exchange (BSE) RCOM said that ‘an amicable settlement has been arrived at between it and minority investors holding 4.26% equity in [Reliance Infratel], and consent terms will be filed shortly.’ The settlement will help clear the path for RCOM to complete its asset monetisation programme, which will see it offload its spectrum as well as tower and fibre infrastructure to Jio for approximately INR250 billion (USD3.7 billion), as it looks to reduces its debt burden of around IN450 billion. Infratel’s minority stakeholders had objected to the transaction, however, accusing the company of mismanagement and failing to secure their consent for the sale. RCOM is also seeking an out of court settlement with operational creditor Ericsson, the Swedish vendor having also sought to halt the deal as it attempts to reclaim unpaid dues totalling INR10 billion.