Companies & Sectors
RCOM plans to sell tower assets to Brookfield for Rs 11,000 crore
Industrialist Anil Ambani-led Reliance Communications has signed a "non-binding term sheet" with Brookfield Infrastructure Group, through which the latter would acquire all the tower assets of RCOM for an upfront cash payment of Rs 11,000 crore, a company statement said here on Friday.
 
Reliance Communication will then become a tenant for the purpose of using the towers for its integrated telecom business. 
 
"Reliance Communications (RCOM) today announced the signing of a non-binding Term Sheet with Brookfield Infrastructure Group in relation to the proposed acquisition of RCOM's nationwide tower assets and related infrastructure by Brookfield," the statement said.
 
"RCOM will also enjoy 49 per cent future economic upside from the towers business, based on certain conditions," it added. Brookfield is an infrastructure assets management company.
 
According to sources, this is the largest-ever foreign direct investment coming into India in the infrastructure sector.
 
Under the Term Sheet, the specified assets are intended to be transferred from Reliance Infratel on a going concern basis into a separate special purpose vehicle, to be owned by Brookfield. RCOM will continue as an anchor tenant on the tower assets, under a long term master services agreement, for its integrated telecommunications business.
 
"RCOM and Brookfield expect considerable growth in tenancies based on increasing 4G offerings by all telecom operators, and the fast accelerating trends in data consumption, which are expected to contribute to significant growth in revenues and profitability for the towers business in the future," the statement said.
 
Both the companies also see several opportunities for consolidation in the towers industry in India that will further enhance growth and value creation in the future. "RCOM intends to utilize the proceeds of the proposed transaction solely to reduce its debt."
 
The statement added: "The proposed transaction is subject to definitive documentation, customary approvals and certain other terms and conditions. Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage."
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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How logical thinking can give you an advantage in life (The Funny Side)
Parents who can't control their kids in public are just not using the right vocabulary. I find that the line "Stop that or Dad will dance" instantly turns my children into angels. It's simple logic, a quality sadly missing in today's society. No one thinks any more.
 
Case in point from last week: a phone company provided a broken, unusable payphone on a street corner for two years, and then told residents that it would remove the call box entirely "because no one uses it". See? No logic.
 
"I can't decide whether this is incredibly stupid, or a genius way to withdraw an unprofitable service," said reader Alun Evans, who sent me the link to that UK story, recorded in the South Wales Evening Post.
 
I think you're being too kind, Alun. Organisations these days no longer allow logical thought. In France earlier this month, a tax bill was sent to a dead woman. That sort of thing is common enough, but in this case the sender had managed to get the right address for the graveyard in the Brittany region: "Grave 24, Row E, Cemetery Road".
 
Clearly, someone had correctly updated the woman's address but then failed to do the logical thinking which should have followed: "Should we be posting bills to corpses in graves in cemeteries? Is there a good record of them paying up?"
 
A colleague, noticing that I was writing a column about logical thinking, told me that there had been loads of science articles recently about the astonishing feats of thinking among birds. She showed me a video of a pigeon flying along an expressway in the Netherlands. The bird stayed in the slipstream (a sort of air-pocket) behind speeding trucks, which enabled it to fly at 100km an hour for more than 20 kilometres.
 
"This is an impressive feat of logic for a creature with a brain the size of a peanut," she said. This got me thinking that it would be wise to open up the US election so that birds (they could call them "avian-Americans") could vote, and this would ensure a wiser result.
 
I emailed a nature photographer friend who told me that that clever pigeon's speed was equal to that of the rare white-throated needle-tail, one of the fastest birds on earth. Scores of birdwatchers travelled to an island off the coast of Scotland in 2013 when a rare example flew to that country, he said.
"They arrived just in time to see the bird fly into a wind turbine which killed it instantly." It was fast but not brainy.
 
Logical thinkers see opportunities where others only see problems. For example, the Internet connection at our home was lost for a day last week when we were late paying the bill. My wife saw the need to race out and pay it. I saw the stricken looks on my children's faces and saw an opportunity to encourage them to move out one of these days.
 
"In the near future, we'll need to lower the household bills by cutting something off the list of necessities. Hmm, food or internet?" "Food! Food! Drop the food! Please DAAAD!"
 
You see? Good parenting is all about choosing the right words.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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