India's Reliance Communications has agreed to sell a 51% stake in its tower business for around $1.7 billion, in India's largest tower segment deal to date.
The operator has provisionally agreed to sell the controlling stake in its tower business to private equity company Brookfield, the Times of Indiareported. RCom plans to maintain the remaining 49% stake in the business.
RCom currently owns 96% of its infrastructure division Reliance Infratel. Minority investors will all exit their investments as part of the deal.
The proposed deal still requires approvals and the meeting of certain terms and conditions, and may not ultimately go through.
But if it does the transaction could help RCom reduce its large debt burden, which has grown to around 420 billion rupees ($6.28 billion). The company is also in the process of merging its mobile business with Aircel as part of efforts to cut its overall debt by around 40%. This deal was announced last month.