RIL’s Telecom Towers To Get Rs 25,215 Crore Investment From Canada-based Company

Economy

Reliance Industrial Investments and Holdings has signed binding agreements with Brookfield Infrastructure Partners LP for an investment of Rs. 25,215 crores

Written By Digital Desk | Mumbai | Updated On:
Reliance

Canada-based Brookfield Infrastructure Partners LP is going to invest Rs 25,215 crores in the telecom tower assets of Reliance Industries, as announced by the Indian firm on December 16, Monday.

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Reliance has made an announcement in a stock exchange filing:

"Further to the earlier disclosures on the subject, Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly-owned subsidiary of Reliance Industries Limited (RILNSE -1.03% BSE), has entered into binding agreements with Brookfield Infrastructure Partners L.P. and its institutional partners, for an investment of Rs. 25,215 crores in the units to be issued by the Tower Infrastructure Trust.”

After the deal is closed, RIL subsidiary will no longer hold any units. Brookfield’s alternative assets manager and their partners would become sponsors of the Tower Infrastructure trust, holding 100% of the equity share capital of Reliance Jio Infratel Pvt Ltd (RJIPL), India's largest telecom tower company with 130,000 towers throughout the trust. RIL will become a co-sponsor.

This is the single largest foreign investment in an Indian infrastructure vehicle. There are plans to build additional towers and they aim to build a total of 1.75 lakh towers.

Mukesh Ambani, the Chairman and Managing Director of RIL told news agencies that: "We are pleased to enter into this long and strategic relationship with Brookfield which is one of the largest and most respected managers of infrastructure assets globally.”

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He also stated that "We are confident of Brookfield's abilities to manage this large portfolio of high-quality infrastructure assets and further enhancing value creation opportunities. This transaction demonstrates the belief of global investors in the potential of India's digital opportunity.”

The closing of the transaction is subject to certain regulatory approvals which are expected shortly. Reliance Industries’ shares were trading at Rs 1,579.25 per piece on the Bombay Stock Exchange (BSE).

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(With Inputs from ANI)

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