Brookfield signed $3.7-bn deal to acquire Reliance’s telecom tower wing
By MYBRANDBOOK
Reliance Industries said in a statement, that Canada's Brookfield Investment Firm and its affiliates will invest Rs 25,215 crore ($3.66 billion) in telecom tower assets of the Reliance Industries Ltd’s telecom tower assets in the single-biggest private equity deal ever in India.
The Canadian firm Brookfield Investment Firm has significant investment in India and want to establish a foothold in India’s telecom tower segment for the past few years. These include a $300 million transaction in 2017 in the largest private equity buyout deal in the roads sector and in the hospitality sector, Brookfield signed a pact earlier this year to acquire four Leela Hotels for $576 million. This deal is yet to pass regulatory muster and has been challenged by ITC Ltd and Life Insurance Corp, the hotel company’s minority shareholders.
RIL informed the stock-exchange filing on Friday, that Brookfield and its co-investors will put the money in the units to be issued by a Tower Infrastructure Trust, an infrastructure investment trust (InvIT).
The trust, which is sponsored by RIL’s wholly owned unit Reliance Industrial Investments and Holdings Ltd, holds a 51% stake in telecom tower operator Reliance Jio lnfratel Pvt. Ltd. RIL itself owns 49% of Reliance Jio lnfratel. The tower business was previously held under RIL’s telecom services arm, Reliance Jio lnfocomm Ltd. The business was transferred to Reliance Jio lnfratel by the end of March.
RIL said, the proceeds from Brookfield’s investment will be used to repay certain existing financial liabilities of Reliance Jio lnfratel and to acquire its 49% stake in the tower company. “This is a significant step forward in optimizing the capital structure of the digital and infrastructure businesses. The transaction validates the value unlocked through spin-off of passive infrastructure assets of Jio through the InvIT structure,” RIL said in a release.
Reporting its first-quarter earnings on Friday, RIL said that its Reliance Jio Infocomm unit reported a net profit of Rs 891 crore for the April-June period on revenue of Rs 11,679 crore. Reliance Jio reported a subscriber base of 331.3 million at the end of June 30, overtaking Bharti Airtel Ltd as India’s second-largest mobile-phone operator by number of users.
Brookfield's investment is subject to conditions precedent, including receipt of requisite government and regulatory approvals, RIL said.
BREAKING NEWS
TECHNO TRENDS
Nazara and ONDC set to transform in-game monetization with ‘
Nazara Technologies has teamed up with the Open Network for Digital Comme...
Jio Platforms and NICSI to offer cloud services to government
In a collaborative initiative, the National Informatics Centre Services In...
BSNL awards ₹5,000 Cr Project to RVNL-Led Consortium
A syndicate led by Rail Vikas Nigam Limited (abbreviated as RVNL), along wi...
Pinterest tracks users without consent, alleges complaint
A recent complaint alleges that Pinterest, the popular image-sharing platf...
E-Magazine
TECHNOTAINMENT
Netflix adds 'Moments' feature for saving, sharing scenes from
Netflix has introduced a new “Moments” feature on its mobile app, whic
Jacqueline Fernandez come together with YouTuber Mr. Beast for
Jacqueline Fernandez has partnered with American YouTuber Mr. Beast to b
MOVERS & SHAKERS
Visa elevates Rishi Chhabra as new Country Manager for India
Rishi holds a Master’s in Industrial Engineering from The Ohio State Univ
Genesys welcomes Albert Nel as Senior VP and Regional Sales Le
Genesys continues to deepen its investment in the APAC region. Earlier this
OPEN YOUR EYES
INTERVIEWS
AMD Pensando driving innovation in the DPU architecture space
AMD Pensando stands out in the DPU (Data Processing Unit) market with its u
In India, 88% of Indian business leaders are planning to inves
As we move through 2024, it has become increasingly clear that AI is not ju
HOT PICK
SonicWall Launches TZ80: A Powerful Solution for Remote Office
SonicWall announced today the launch of the TZ80, a groundbreaking securit
Gigabyte X3D Turbo: A Gaming Revolution
GIGABYTE X3D Turbo Mode is a cutting-edge feature that unifies cores distr
MAKE IN INDIA BRANDS
HAVELLS INDIA LTD.
EXIDE INDUSTRIES LTD.
ZOHO CORPORATION PVT. LTD.
TEJAS NETWORKS INDIA PVT. LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Icons Of India : Bhavish Aggarwal
Indian entrepreneur Bhavish Aggarwal is the CEO of Ola, India’s larg...
ICONS OF INDIA : VINAY SINHA
Vinay Sinha is the Managing Director of Sales for the India Mega Regio...
ICONS OF INDIA : RAJESH NAMBIAR
Rajesh leads the company’s India associates and enhances relationshi...
PARTNER SPEAKERS
PSU
IREDA - Indian Renewable Energy Development Agency Limited
IREDA is a specialized financial institution in India that facilitates...
PFC - Power Finance Corporation Ltd
PFC is a leading financial institution in India specializing in power ...
ECIL - Electronics Corporation of India Limited
ECIL is distinguished by its diverse technological capabilities and it...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - Aman Bhutani, CEO, GoDaddy
Aman Bhutani, the self-taught techie and CEO of GoDaddy, oversees a co...
Indian Tech Talent Excelling The Tech World - Shantanu Narayen, CEO- Adobe Systems Incorporated
Shantanu Narayen, CEO of Adobe Systems Incorporated, is renowned for h...
Indian Tech Talent Excelling The Tech World - George Kurian, CEO, Netapp
George Kurian, the CEO of global data storage and management services ...
STARNITE AWARDS 2024
ITFORUM 2024
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
