Brookfield Infrastructure Partners, the Canadian asset management company, will invest Rs 25,215 crore ($3.55 billion) in the telecom tower assets of Mukesh Ambani’s Reliance Industries in a deal that will help strengthen the balance sheet of Reliance Jio Infocomm.
Reliance Industrial Investments & Holdings Ltd., a wholly owned unit of Reliance Industries, has entered into binding agreements with Brookfield Infrastructure and its institutional partners, which will invest the amount in units to be issued by the Tower Infrastructure Trust, the Indian oil-to-retail conglomerate said in a notice to the stock exchanges on Monday.
“Closing of the transaction is subject to certain regulatory approvals, which are expected shortly,” Reliance added.
Reliance said that after the transaction is completed, the Trust will own 100% of the equity share capital of Reliance Jio Infratel Private Ltd. (RJIPL), the unit that houses the telecom tower assets.
The Trust currently owns 51% of RJIPL, while Reliance Industries holds the remaining 49%. On receiving the funds from Brookfield, the Trust will buy Reliance’s 49% stake, repay Rs 12,000 crore to Jio and clear other financial liabilities of RJIPL. Jio will then transfer Rs 12,000 crore to Jio and clear other financial liabilities of RJIPL. Jio will then transfer Rs 12,000 crore to Reliance against certain financial liabilities owed to the parent company.