Tower Infrastructure Trust (Tower InvIT) which is sponsored by Brookfield and backed by leading global infrastructure investors has struck a deal to acquire telecom infrastructure provider Space Teleinfra (STIPL), a leading indoor coverage solutions provider in India, for an equity consideration of Rs 900 crore (USD 121 million).
The transaction is funded through a combination of cash and units of Tower InvIT to be issued to selling shareholders. Under the deal terms, STIPLs 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.
Space Teleinfra is a shared telecom infrastructure provider for voice and data connectivity. It commenced operations in 2016 with a focus on providing telecom infrastructure to mobile network operators for Outdoor Small Cells (ODSC), in-building solutions (IBS), and Roof Top Towers. The company has a well spread customer base across all the three major mobile operators, with a pan-India presence.
Tower Infrastructure Trust was established by Reliance Industries Group. Brookfield acquired the company in September 2020.
Ankit Goel, Co-founder, and Managing Director, STIPL, said the transaction would outline significant growth opportunities for STIPL considering the synergies with Tower InvIT.
“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," Ankit added.