India’s Reliance Comm signs binding pact with Brookfield for $1.6 billion tower stake sale

A worker cleans a mobile store of Reliance Communications Lts, controlled by billionaire Anil Ambani, in Kolkata

MUMBAI (Reuters) – Indian telecommunications carrier Reliance Communications Ltd said on Wednesday it had signed a binding pact with Canada’s Brookfield Infrastructure for selling a stake in its mobile phone tower business.

The two sides had signed a non-binding pact in October.

Under the terms of the deal, Reliance Communications is to receive an upfront payment of 110 billion rupees ($1.6 billion), which it has said will use to cut its debt load.

Shares of Reliance Communications jumped more than 8 percent after the announcement.

($1 = 67.8525 Indian rupees)

(Reporting by Devidutta Tripathy; Editing by Subhranshu Sahu)