Reliance Communications (RCOM) is reportedly negotiating with the private equity consortium of Blackstone and Carlyle to sell its tower unit. It is believed that the deal is likely to be closed by December 2011.
The transaction is expected to value the tower asset in excess of $3.5 billion.
Blackstone is likely to be the lead investor in this transaction.
Further, it is believed that RCOM may also finalise a tower sharing deal with Reliance Infotel before the sale of the tower unit.
Prior to this, it was reported that Blackstone and Carlyle were evaluating a joint bid for the tower unit, which was put up for sale as RCOM wanted to clear the Rs 320 billion debt on its books.
Further, it is expected that a tower sharing deal with Reliance Infotel may favourably help the valuation of the tower unit for which the private equity consortium had offered a base price of $3 billion.
Reliance Infotel will reportedly make an upfront payment of around $100 million as part of this long-term tower sharing arrangement.
