ibnlive » Business

Jun 14, 2010 at 08:52pm IST

Rel Comm to restructure tower co-ownership

New Delhi: Reliance Communications, India's second-biggest mobile operator, said on Monday its board had approved a proposal to restructure ownership of its tower unit, Reliance Infratel, to help create an independent tower company.

Reliance Comm said in a statement it would implement the ownership restructuring proposal through "demerger and/or other suitable value-creating options", without elaborating.

The company said it was in "advanced stage" discussions with several local and international strategic and financial players to sell a stake and expected to announce a deal shortly.

Reliance Comm to restructure tower co-ownership

The Reliance Comm has decided to restructure its ownership of the tower unit Reliance Infratel.

"I am personally looking forward to an era of healthy cooperation and collaboration with existing and new players, especially recent winners of 3G and BWA (broadband wireless access) spectrum," Reliance Communications Chairman Anil Ambani said in a statement.

"I am delighted that this endeavour will greatly benefit Reliance Communications through substantial debt reduction, and enhanced financial flexibility," he said.

Consideration for sale of stake in the tower company would be received in cash and stock, the company said.

Separately, Reliance Communications board had earlier approved selling an up to 26 percent stake in the company.