MHA Approves Reliance Jio And Brookfield Tower Deal: Report

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Reliance Jio has finally received approval from the Ministry of Home Affairs (MHA) for its deal with Brookfield tower. However, the ministry has asked the Department of Telecommunications to discuss the debt with Sebi. This means that deal will take time to go through, and the Securities and Exchange Board of India's (Sebi's) will make a decision.

MHA Approves Reliance Jio And Brookfield Tower Deal: Report

 

"The MHA has approved the equity part of the deal, and now DoT has to seek Sebi's opinion on the debt component," a government official was quoted by Economic Times. Adding to that, "The government wants to have a clear understanding of the structure, hence there's more scrutiny."

RIL To Sell Towers To Brookfield For Rs. 25,215 crore

Last year, Reliance Industries announced that it is selling its tower business to Brookfield for Rs. 25,215 crore. The Canada-based will buy 100 percent equity.

"Reliance Industrial Investments and Holdings Ltd (RIIHL) '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," the company said. So far, this is the largest deal by any company in the telecom infrastructure in India.

Reliance Jio Sold 22.38 Stake To Nine Firms

The decision comes after Reliance Jio has sold its stakes 22.38 percent stake to seven US and two Abu Dhabi based firms. The company has raised Rs. 1, 04,326.65 crore in just eight weeks.

Apart from that, Reliance Jio has announced two new investors late night on Saturday, June 13, 2020. The first in the list is TPG, and the other one is L Catterton. The TPG has bought 0.93 percent for Rs. 4,546.8 crore, while L Catterton is buying only 0.39 percent with an investment of Rs. 1,894.5 crore. However, all transactions require or approvals from regulatory authorities in India.

 

After this announcement, L Catterton has become the ninth investor in Reliance Jio. Initially, Facebook has started this process by buying a 9.99 percent stake in Jio Platforms.

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