India’s Reliance Communications (RCOM) has picked a private equity consortium of Blackstone and The Carlyle Group out of three bidders for its tower unit, Times of India reports. The deal, likely to be closed by December, is expected to value the tower asset at more than $3.5 billion. Blackstone is expected to be the lead investor in the buyout deal.
RCOM, which may be eyeing the transaction at about $4 billion, has been offered a base price of $3 billion. The sale will help RCOM offload a major part of the $6.37 billion debt. Industrialist Mukesh Ambani‘s Reliance Infotel will pay nearly $100 million as part of a long-term tower sharing arrangement with Anil Ambani-controlled RCOM. The tower sharing will boost the tenancy ratio of the tower unit.
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