Familiar sources mentioned that the Government of India has approved Brookfield Asset Management Inc’s proposal for an acquisition of a 252 billion rupees ($3.4 billion) stake in trust to manage the wireless infrastructure of India’s biggest mobile-phone service provider.
Brookfield was permitted by the telecom ministry to take control of Reliance Jio Infratel Pvt. through Tower infrastructure Trust, added sources, remaining anonymous prior to a public announcement. Further information was that the proposal became cleared by the finance and home ministries and also the central bank in July.
After nearly a year since the proposition was made, the endorsement from the government will help Asia’s richest man Mukesh Ambani add to the more than $20 billion he has raised by selling stakes in his technology venture, Jio Platforms Ltd. A spokesman for the finance ministry could not be reached on his mobile phone, while representatives for the communications ministry, home ministry and the central bank didn’t immediately respond to queries seeking comment. A spokesman for Reliance declined to comment.
Ambani had planned to use the proceeds to repay “existing financial liabilities” and acquire stake his flagship Reliance Industries Ltd. doesn’t own in Reliance Jio Infratel, according to a statement in July last year.