By Saurabh Chaturvedi
Canada's Brookfield Asset Management Inc. (BAM) and some co-investors will invest 252.15 billion Indian rupees ($3.66 billion) in a trust that indirectly controls tower assets of the telecom unit of Reliance Industries Ltd. (500325.BY), the Indian conglomerate said.
Reliance Industrial Investments & Holdings Ltd., a subsidiary of Reliance Industries, has entered into an agreement with an affiliate of Brookfield for the investment in Tower Infrastructure Trust, the Indian company said in a stock-exchange filing late Friday.
Under the deal, the Canadian company and its co-investors will acquire units to be issued by the trust, which is sponsored by Reliance Industrial Investments & Holdings, the Indian company said.
In a separate statement, Brookfield Infrastructure Partners LP (BIM), a division of Brookfield Asset Management, said it acknowledged Reliance's filing regarding the planned investment.
Reliance Industries didn't provide details about the size of the stake Brookfield will hold in the trust upon the deal's completion. The transaction is subject to regulatory and government approvals, the Indian company said.
The trust currently owns a 51% stake in Reliance Jio Infratel Pvt. Ltd., which owns the tower assets of Reliance Jio Infocomm Ltd., the telecom arm of Reliance Industries. Reliance Industries holds the remaining 49% stake of the tower arm.
Reliance Industries said proceeds from the deal would be used in part to repay certain existing financial liabilities of the tower company.
Also Friday, Reliance Industries reported a net profit of INR101.04 billion in its fiscal first quarter, up 6.8% from a year earlier. Revenue rose to INR1.730 trillion from INR1.417 trillion.
Analysts polled by S&P Global Market Intelligence had expected the company to report net profit of INR96.06 billion and revenue of INR1.498 trillion.
Write to Saurabh Chaturvedi at firstname.lastname@example.org
(END) Dow Jones Newswires
July 20, 2019 06:05 ET (10:05 GMT)Copyright (c) 2019 Dow Jones & Company, Inc.