India's Reliance Industries has confirmed a deal to sell the towers network of its mobile unit Jio to Brookfield Infrastructure Partners. After a preliminary agreement in June, the companies announced a definitive contract for the acquisition of approximately 130,000 communication towers by Brookfield for USD 3.7 billion (INR 252.15 billion).
Brookfield Infrastructure will invest some USD 375 million, with the rest funded by its institutional partners. The investors have signed binding agreements to acquire 100 percent of the tower company from Reliance Industrial Investments and Holdings, a subsidiary of Reliance Industries.
The towers are recently constructed assets located for pan-India 4G coverage. They are well positioned from a competitive perspective as they are largely connected by fibre backhaul, the investor said.
Jio is an anchor tenant of the tower portfolio under a 30-year Master Services Agreement. Sam Pollock, CEO of Brookfield Infrastructure, said the towers have so far only carried Jio equipment but there is potential for co-location of other operators’ kit. An expansion is expected to bring the portfolio to approximately 175,000 towers.
Anuj Ranjan, managing partner and head of India and the Middle East for Brookfield, said this continues a relationship with Reliance begun by an Indian gas pipeline investment completed earlier this year.
Closing of the transaction is subject to certain regulatory approvals.
