Global PEs back Reliance Communications' plan to sell stake in tower arm to Brookfield

KOLKATA: Global private equity investors and international hedge funds, including NSR Partners, Galleon, HSBC Daisy Investments (Mauritius), Drawbridge Towers, Investment Partners B (Mauritius) and George Soros Quantum Funds are learnt to have backed Reliance Communications’ decision to sell a majority stake in its tower arm, Reliance Infratel, to Canada’s Brookfield Group, two people directly aware told ET.

RCom owns nearly 96% of Reliance Infratel while the likes of NSR Partners, Galleon, HSBC Daisy Investments (Mauritius), Drawbridge Towers, Investment Partners B (Mauritius) and George Soros Quantum Funds collectively own the remaining 4.26%.

Approval from these minority and institutional investors in Reliance Infratel is slated to hasten closure of the RCom-Brookfield tower sale deal, which, in turn will help the beleaguered Anil Ambani-led telco to cut its mammoth debt, pegged at nearly Rs 45,000 crore. Last October, RCom had inked a non-binding pact with Brookfield Infrastructure Group to sell a majority 51% stake in Reliance Infratel for Rs 11,000 crore, which would be used to bring down its mammoth debt.

An RCom spokesman did not reply to ET’s emailed query. At press time, mails to NSR Partners and HSBC-UK did not elicit a response while the other minority and institutional investors in Reliance Infratel could not be reached for comment.