Reliance Industries (RIIHL), India’s largest subscriber-based mobile operator, agreed to sell the tower assets of subsidiary Reliance Jio to Brookfield Infrastructure Partners for $3.7 billion of which Brookfield will invest approximately $375 million. The balance is being funded by its institutional partners. The portfolio of approximately 130,000 towers, features Reliance Jio as the anchor tenant on all of the sites under a 30-year agreement.
“This is a unique opportunity to invest in a large-scale, high-quality telecom business and participate in India’s high-growth data industry,” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. “This is an attractive business that offers downside protection with meaningful upside by co-locating equipment from other Mobile Network Operators on the towers, which to-date, have only carried Jio equipment. Further growth is anticipated through a tower build-out program, which is expected to bring the portfolio to approximately 175,000 towers.”
“We are pleased to be continuing our relationship with Reliance, following our successful Indian gas pipeline investment completed earlier this year,” said Anuj Ranjan, Managing Partner and Head of India and the Middle East for Brookfield. “Leveraging the strength of our partnership with Reliance, combined with the depth of Brookfield Infrastructure’s operating expertise, makes us well-positioned to execute on future growth for the business.”
The company said the transaction is subject to certain regulatory approvals, which are expected soon.
December 17, 2019