Canada’s Brookfield Invests $1.6 Billion in India’s Telecom Towers

Brookfield Infrastructure Partners, a private investment firm headquartered in Canada, will buy the telecom tower business of Reliance Communications Ltd (RCOM) for $1.6 billion in cash. This deal is the second biggest private equity deal ever in India.

Brookfield Logo

RCOM’s telecom towers are part of Reliance Infratel Ltd and these will be de-merged into a separate company which will be wholly owned and independently managed by Brookfield Infrastructure, creating the second-largest independent and operator-neutral towers company in India. Private investors George Soros’ Quantum, private equity firm New Silk Route and other investors who had a share in Reliance Infratel were also paid out.

RCOM will receive Class B non-voting shares in the new tower company, providing 49% future economic upside in the firm, based on certain conditions, reports VCCircle. RCOM said it will use the cash payment to reduce 70% of its existing debt.

 

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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