RIL’s telecom towers start minting money: Brookfield to invest this much in Mukesh Ambani firm

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Published: December 16, 2019 12:41:49 PM

Reliance Industries took a major step towards monetising its telecom tower assets, with Canadian investor Brookfield Infrastructure Partners LP and its institutional partners agreeing to invest Rs 25,215 crore in Mukesh Ambani-group’s telecom towers unit.

Mukesh Ambani led Reliance denies selling news media business to Times Group, says reports false and baselessEarlier, Brookfield had shown interest in the tower assets of Anil Ambani’s Reliance Communications as well.

Reliance Industries took a major step towards monetising its telecom tower assets, with Canadian investor Brookfield Infrastructure Partners LP and its institutional partners agreeing to invest Rs 25,215 crore in Mukesh Ambani-group’s telecom towers unit. “Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), has entered into binding agreements with Brookfield Infrastructure Partners LP and its institutional partners, for an investment of Rs. 25,215 crore in the units to be issued by the Tower Infrastructure Trust,” Mukesh Ambani-led oil-to-telecom conglomerate said in a regulatory filing.

Earlier, Brookfield had shown interest in the tower assets of Anil Ambani’s Reliance Communications as well. However, the deal couldn’t materialise. Shares of Reliance Industries were trading at Rs 1,573.50, down 9.40 points, or 0.59 per cent on NSE at the time of reporting.

Tower Infrastructure Trust will hold 100 per cent of the issued and paid up equity share capital of Reliance Jio lnfratel Private Limited (RJIPL) after the transaction is closed, RIL also said. Nearly 130,000 telecom towers are part of the portfolio of RJIPL. The company plans to increase the towers to 1,75,000. Reliance Jio is an anchor tenant of the tower portfolio under a 30-year Master Services Agreement.

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In November 2019, Reliance Industries became the first Indian firm to surpass the  Rs10 trillion in market capitalisation. “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,” Mukesh Ambani, Chairman, RIL said.

Telecom war

The Indian telecom sector is witnessing a price war since the entry of Reliance Jio. Apart from Jio, Bharti Airtel and Vodafone Idea are the major telecom operators in India.

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