Reliance Communications on Friday said it will sell 51% stake in its mobile tower assets business to Canada's Brookfield Infrastructure Group for Rs 11,000 crore, Reuters reported. The Anil Ambani-owned company, which on September 14 announced a merger of its wireless business with Aircel, said it will use the proceeds of the agreement solely to repay its debt.
The deal, if granted regulatory approval, will be one of the largest foreign direct investments in the infrastructure sector, according to The Hindu. The assets will be transferred from Reliance Infratel Limited to a special purpose vehicle, which will be owned by Brookfield. R-Comm, however, will continue as a tenant on the assets on a long-term basis. The two companies said they expect significant revenue and profitability growth in the mobile tower sector because of increased offerings to consumers by all carriers.
The agreement comes just a week after Hiranandani Developers Private Limited announced the sale of its office and retail assets in Mumbai's Powai suburb to Brookfield for Rs 6,675 crore. The Canadian asset management company has expressed its willingness to double its existing asset base in India, saying that it will invest more than $2 billion (approximately Rs 13,350 crore) in the country in the next two to three years.