At the closing of the transaction, the Tower Infrastructure Trust will own 100% of the issued and paid up equity share capital of Reliance Jio lnfratel Private Limited
Jio is an anchor tenant of the tower portfolio under a 30-year Master Services Agreement
NEW DELHI :
New Delhi: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, it said in a filing with the exchanges.
At the closing of the transaction, the Trust will own 100% of the issued and paid up equity share capital of Reliance Jio lnfratel Private Limited (RJIPL). RJIPL has a portfolio of approximately 130,000 telecom towers that form the backbone of Reliance Jio Infocomm Limited’s network. The company plans to scale up to 1,75,000 towers eventually.
Jio is an anchor tenant of the tower portfolio under a 30-year Master Services Agreement.
Mukesh Ambani, Chairman and Managing Director of RIL said “We are pleased to enter into this long and strategic relationship with Brookfield, which is one of the largest and most respected managers of infrastructure assets globally. 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-led Reliance Industries Ltd (RIL) in November became the first Indian company to cross Rs10 trillion in market capitalization, with its shares surging nearly 41% since the start of 2019.
Earlier in December, Goldman Sachs Equity Research had increased the 12-month target price of the shares of Reliance Industries to ₹1,850 per share. The equity research firm also raised the earnings estimate for financial year 2021-22. It expects Reliance Jio to benefit the most from the recent tariff hike announced by the three private telecom operators. It said that among the three operators, Jio is most likely to witness the highest increase in average revenue per user (ARPU).
Further, Goldman Sachs said complex refiners will be the biggest beneficiaries of International Maritime Organization (IMO) 2020 regulations and RIL, with the highest refining complexity, is well positioned to benefit from the same. Shipping companies have to adhere to the IMO's low sulphur fuel regulations starting January 1. The regulations 2020 mandate reduction in sulphur content of bunker fuel to less than 0.5% from 3.5% to reduce sulphur dioxide emissions globally.