Under the deal terms, STIPL’s shareholders will receive consideration through a combination of cash and units in Brookfield-sponsored Tower InvIT through a preferential allotment of units, the two companies said in a joint statement on Tuesday.
“Tower Infrastructure Trust (Tower InvIT) has signed binding agreements to acquire STIPL, a leading indoor coverage solutions provider in India,” Brookfield India Infrastructure Pvt Ltd, said in the statement.
It added that the Tower InvIT would be acquiring STIPL for “an equity consideration of Rs 900 crore (subject to closing adjustments) and additional milestone-based considerations, which will be funded through a combination of cash and units of Tower InvIT to be issued to the selling shareholders”.
STIPL, which started operations in 2016, provides telecom infrastructure to mobile phone operators for outdoor small cell, in-building solutions, and roof top towers.
Brookfield said with the STIPL acquisition, Tower InvIT would further expand its suite of passive telecommunication infrastructure services for customers, from macro towers to indoor solutions. Closing of the acquisition, it said, is subject to customary closing conditions and regulatory approvals and is likely in the second half of 2021.
“Considering the synergies with Tower InvIT, this transaction will outline significant growth opportunities for STIPL. With the onset of 5G and data consumption trends, seamless indoor connectivity becomes as essential as outdoor connectivity, and this transaction will open new horizons for STIPL to lead this opportunity further,” said Ankit Goel, co-founder at STIPL.
Back in July 2019, Brookfield had inked an agreement with Reliance Jio to buy the latter’s mobile towers for Rs 25,215 crore. After the transaction, Brookfield became the sponsor of Tower Infrastructure Trust.
Ambit Pvt Ltd was the financial advisor to STIPL’s shareholders while Khaitan & Co acted as legal advisors.
