The government has approved the Rs 25,215-crore deal between a subsidiary of Reliance Industries and Canadian firm Brookfield Infrastructure Partners LP, involving sale of over 1.35 lakh mobile towers, according to a regulatory filing.
The government has approved the Rs 25,215-crore deal between a subsidiary of Reliance Industries and Canadian firm Brookfield Infrastructure Partners LP, involving sale of over 1.35 lakh mobile towers, according to a regulatory filing. Reliance Industries’ unit, Reliance Industrial Investments and Holdings Ltd (RIIHL), renamed as RPPMSL, had inked binding agreements with Brookfield Infrastructure Partners LP and its partners for the tower business deal in December 2019.
“The Brookfield Sponsor has entered into the Deed of Accession dated August 26, 2020, with the Reliance Sponsor and the Trustee, upon receipt of the approval from Department of Telecommunications (DoT) dated August 11, 2020,” a regulatory filing by Brookfield’s Tower Infrastructure Trust dated August 28 said. The Tower Company, Reliance Jio Infocomm Limited and Reliance Projects & Property Management Services Limited (RPPMSL) have entered into a master service agreement to execute the deal under which Reliance Jio will remain the tenant of the new entity for the next 30 years.
The asset base of Tower Company as on March 31, 2020 was 1,35,047 towers which it plans to scale up to 1,74,451 during the current financial year. Currently, Reliance Jio Infocomm Limited is the sole tenant of the Tower Sites.
“The Tower Co holds completed and revenue generating assets with some more towers planned for construction in future and therefore the investment is in compliance with the InvIT Regulations,” the filing said. Brookfield has purchased 100 per cent equity of the operating tower company. Proceeds from the investment by Brookfield and long-term loans will be used to repay existing financial liabilities of Reliance Jio Infratel Pvt Ltd (RJIPL), including loans extended by RIL.