Brookfield Infrastructure Partners is considering the sale of a minority stake in its telecommunications tower business in India, according to people familiar with the matter.
The Canadian investment firm is working with an adviser to sell a stake of more than 10 percent in the infrastructure investment trust that holds Summit DigiTel, the people said, asking not to be identified because the matter is private. A deal would satisfy regulatory requirements around the so-called InvIT structure, the people added.
Investors including pension funds have shown preliminary interest in acquiring the stake, as they seek stable returns and a chance to increase their exposure to the South Asian economy, the people said.
Brookfield and its institutional partners completed their acquisition of the telecom tower unit of billionaire Mukesh Ambani’s Reliance Industries Ltd. for about $3.4 billion in 2020.
Deliberations are preliminary and Brookfield may decide against pursuing a sale, the people said. A representative for Brookfield declined to comment.
Summit DigiTel counts a portfolio of more than 151,000 telecom sites, making it one of India’s biggest digital infrastructure companies, according to its website. Reliance Jio is an anchor tenant of the portfolio under a 30-year agreement. Summit DigiTel is owned by Data Infrastructure Trust, an InvIT sponsored by Brookfield, the website shows.
American Tower Corp. is similarly weighing strategic options for its India business including the sale of an equity stake, the company said in an earnings call in February. The real estate investment trust bought about 20,000 towers in the country for about $1.2 billion in 2017.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM