Reliance Industries will be divesting its telecoms arm, Jio’s telecom tower assets to Canada’s Brookfield Infrastructure Partners LP for Rs 252.15 billion. To this end, Reliance Industrial Investments and Holdings Ltd (RIIHL) has signed a binding agreements with Brookfield and its partners.
Brookfield will buyout 100 per cent equity of the operating tower company.
Under the deal, RIIHL, the sponsor of Tower Infrastructure Trust, would issue units in the trust to Brookfield affiliate BIF IV Jarvis India and some co-investors.
Post the deal, Brookfield and its partners would be holding 100 per cent of the telecom tower company with 130,000 towers through Tower Infrastructure Trust, while the RIL subsidiary would become a co-sponsor holding no units.
RIL is planning to use the proceeds from the investment by to repay existing financial liabilities of Reliance Jio Infratel Private Limited (RJIPL).
