Reliance Communications calls off tower biz demerger plans: Sources

Reliance Communications (RCom) has withdrawn its plans to demerge its tower business, reports agencies. The beleaguered company was pursuing a Rs 11,000 crore tower deal with Canada's Brookfield. The latter had in December agreed to pay RCom upfront cash of Rs 11,000 crore for a 51 percent stake in Reliance Infratel.

Reliance Communications' lawyer has informed the National Company Law Tribunal (NCLT) that the company has withdrawn from towers demerger.

The company had earlier planned to sell 51 percent stake in the tower business to Brookfield. Now, the company is renegotiating with Brookfield to sell its 100 percent stake in the tower business. The petition filed in the NCLT was for 51 percent with Brookfield for a valuation of Rs 11,000 crore.

The company made a statement yesterday that the deal with the Brookfield has to be reworked and will take 2-3 weeks to come up with a revised agreement. The valuation is going to get lower as Rcom pulled out of the merger with Aircel. The company will have a rental agreement with Brookfield for the tower lease.