Canada based Brookfield Group to buy 51% stake in Reliance Communication’s subsidiary Reliance Infratel for Rs. 11,000 crores ($1.6 bn.). Reliance Infratel is Reliance communications tower unit. The transaction will now be subjected to approvals by shareholders, regulator and lenders.
After the all-cash deal is completed, Brookfield Infrastructure will manage and demerge Reliance Infratel into a separate new company making it second largest independent and operator-neutral tower company in India after Indus Towers. Reliance Infratel has Anil Ambani led Reliance Communication and Mukesh Ambani led Reliance Jio as main customers along with some other third party telecom operators.
Reliance communications wireless business merger with Aircel and latest sale of Reliance Infratel are parts of company’s plan to reduce its debt of Rs 42,071 ($6.1 bn).
About Reliance Infratel
Reliance Infratel builds, owns, and operates telecommunication towers, optic fiber cable (OFC) network and provides these infrastructure assets on a shared basis to wireless and other communications service providers, as well as to non-communications customers under long-term contracts.
Reliance Infratel is a subsidiary of Reliance Communication (RCom). RCom owns 96% stake of it, the remaining 4% is held by institutional investors such as George Soros’ Quantum, NSR Partners, Galleon, HSBC Daisy Investment (Mauritius), Drawbridge Towers and and Investment Partners B (Mauritius).
The company was formerly known as Reliance Telecom Infrastructure Limited and changed its name to Reliance Infratel Limited in January 2008. The company was incorporated in 2001 and is based in Navi Mumbai, India.
About Reliance Communications
Reliance Communications (RCom) is an Indian Internet access and telecommunications company headquartered in Navi Mumbai, India. It provides GSM (Voice, 2G, 3G, 4G) mobile services, fixed line broadband and voice services, DTH depending upon the areas of operation. Reliance Communications is the fourth largest telecom operator in India with 98.70 million subscribers as of June 2016.
Established in 2002, it is a subsidiary of Reliance Anil Dhirubhai Ambani Group. Reliance Communication IT Support is provided by Reliance Tech Services and Telecom network is maintained and operated by Ericsson, transmission towers are maintained by its subsidiary Reliance Infratel.
About Brookfield Infrastructure
Brookfield Infrastructure engages in the acquisition and management of infrastructure asset. The company is headquartered in Hamilton, Bermuda and was founded in 2008.
Brookfield Infrastructure engages in the utility, transport and energy, and timber businesses. The company owns and operates coal export terminals, electricity transmission lines in North and South America, natural gas distribution connections.
About Brookfield Asset Management (Brookfield Group)
Brookfield Asset Management is a publicly owned asset management holding company with over $200 billion of assets under management. Through its subsidiaries, the firm invests in the property, power, and infrastructure sectors. Its property business includes owning and managing office properties, developing residential communities, and offering clients bridge and mezzanine lending, alternative assets funds, and financial and advisory services. Through its subsidiaries, the firm operates hydroelectric power facilities, interconnections and transmission facilities in Northeast North America, and development of wind power in Canada. Through its subsidiaries, it invests in specialty funds including private equity and makes direct investments in real estate, energy, and resource assets.
The company was founded in 1899 as a builder and operator of electricity and transport infrastructure in Brazil.