GIC, a Singapore-based capital market company and other investors such as Canada’s Brookfield Infrastructure Partners, have acquired a Reliance Industries-owned telecom tower company for $3.4 billion, media reports said.
Ang Eng Seng, GIC’s chief investment officer for infrastructure, told the media, “The portfolio offers resilient income and long-term value given India’s attractive data demand growth outlook as 4G and smartphone penetration is still very low. While we remain cautious in this period of high uncertainty, we continue to seek good, long-term opportunities in India.”
It is reported that the acquisition was finalised in 2019 and had been waiting for regulatory approvals from the Indian government. The move by Reliance Industries marks its quest to reduce debt and raise fresh capital.
The acquisition has paved the way for GIC to foray into India’s fastest growing telecom market which has growing exponentially, especially with the launch of Jio, Reliance’s subsidiary. The company has been ranked number one in terms of subscribers as it offers cost-effective packs for both internet and calling.
The number of internet subscribers in the country is increasing every year.
According to GIC, investments are carried out for around 135,000 communication towers used Jio Infocomm. The move by GIC and a group of investors marks a serious acquisition amid the Covid-19 pandemic which has upset global economic growth.