Brookfield Infrastructure Announces Closing of Indian Telecom Towers Transaction
August 31 2020 - 4:15PM
Brookfield Infrastructure Partners L.P. (“Brookfield
Infrastructure”) (NYSE: BIP; TSX: BIP.UN) today announced that it
has completed the previously announced acquisition of a 100% stake
in a telecom tower company in India from Reliance Industrial
Investments and Holdings Limited, a wholly-owned subsidiary of
Reliance Industries Limited (“RIL”). Brookfield and its
institutional partners will be making an equity investment of
approximately $3.4 billion, of which Brookfield Infrastructure will
be investing $600 million.
Brookfield Infrastructure has acquired a
high-quality portfolio of approximately 135,000 recently
constructed communication towers that form the infrastructure
backbone of Reliance Jio’s (“Jio”) telecom business. This portfolio
provides a well-placed platform to capitalize on the rollout of 5G
across the country, as the towers are largely connected by fiber
backhaul. Jio is an anchor tenant of the business under a 30-year
Master Services Agreement, providing a secure, long-term source of
revenue and incremental business plan tower build-out to drive
growth that is expected to bring the portfolio to 175,000 towers in
the near term.
“We are pleased to have closed this transaction,
which was one of our top priorities for 2020,” said Sam Pollock,
Chief Executive Officer of Brookfield Infrastructure. “The
acquisition of this large-scale, high-quality telecom tower
business significantly expands and diversifies our Data
Infrastructure segment and competitively positions us in India’s
growing data industry.”
“We are confident in the long-term prospects for
data sector growth in India,” said Anuj Ranjan, Managing Partner
and Head of India and the Middle East for Brookfield. “We are
looking forward to continuing to work alongside Reliance, which has
established itself as a leading telecom and technology company in
India. The recent investments by leading global technology
companies and private equity investors in Jio is further testimony
to the platform Reliance has built and their strength as our anchor
tenant.”
Brookfield Infrastructure
Partners is a leading global infrastructure company that
owns and operates high-quality, long-life assets in the utilities,
transport, energy and data infrastructure sectors across North and
South America, Asia Pacific and Europe. We are focused on assets
that generate stable cash flows and require minimal maintenance
capital expenditures. Investors can access its portfolio either
through Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX:
BIP.UN), a Bermuda-based limited partnership, or Brookfield
Infrastructure Corporation (NYSE, TSX: BIPC), a Canadian
corporation. Further information is available at
www.brookfield.com/infrastructure.
Brookfield Infrastructure is the flagship listed
infrastructure company of Brookfield Asset Management, a global
alternative asset manager with approximately $550 billion of assets
under management. For more information, go to
www.brookfield.com.
For more information, please contact:
Media:Claire Holland Tel: (416) 369-8236Email:
claire.holland@brookfield.com |
Investors:Kate WhiteTel: (416) 956-5183Email:
kate.white@brookfield.com |
Cautionary Statement Regarding
Forward-looking Statements
Note: This news release contains forward-looking
statements and information within the meaning of applicable
securities laws. The words “will”, “expected”, “intends”,
“anticipated” or derivations thereof and other expressions which
are predictions of or indicate future events, trends or prospects,
and which do not relate to historical matters, identify the above
mentioned and other forward-looking
statements. Forward-looking statements in this news release
include statements regarding the future performance of the business
including its potential for growth. Although Brookfield
Infrastructure believes that these forward-looking statements and
information are based upon reasonable assumptions and expectations,
the reader should not place undue reliance on them, or any other
forward-looking statements or information in this news release. The
future performance and prospects of Brookfield Infrastructure are
subject to a number of known and unknown risks and uncertainties.
Factors that could cause actual results of Brookfield
Infrastructure to differ materially from those contemplated or
implied by the statements in this news release include general
economic conditions in the jurisdictions in which we operate and
elsewhere which may impact the markets for our products and
services, including the products and services provided by the
business that is the subject of this news release the fact that
success of Brookfield Infrastructure is dependent on market demand
for an infrastructure company, which is unknown and the ability to
effectively complete new acquisitions in the competitive
infrastructure space and to integrate acquisitions into existing
operations, and other risks and factors described in the
documents filed by Brookfield Infrastructure with the securities
regulators in Canada and the United
States including under “Risk Factors” in Brookfield
Infrastructure’s most recent Annual Report on Form 20-F and other
risks and factors that are described therein. Except as required by
law, Brookfield Infrastructure undertakes no obligation to publicly
update or revise any forward-looking statements or information,
whether as a result of new information, future events or
otherwise.
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