RJio, Brookfield’s tower deal passes DoT muster
The Department of Telecommunications has a pproved the Rs 25,215 cr ore deal between R eliance Jio and Brookfield Infrastructure.
A S EBI f iling s aid: "T he DoT through its letter da ted August 11, 2020 has approved Rs 1,053.50 mill ion do wnstream f oreign in vestment for acquisition of the r emaining 49% of the paid-up equity share capital of Tower Co . fr om RIL b y the Trust."
Further, the de partment has also a pproved the increase in foreign investment in Tower Co. to 100% of the paid-up equity share capital.
In December last y ear, R e - liance Industrial Investments and Holdings Limited (RIIHL), a wholly owned subsidiary of R eliance Industries Limited (RIL) enter ed into an a greement under which it will receive Rs 25,215 cr ore in vestment b y Canadian entity Br ookfield Infrastructure and its institutional partners in its tower infrastructure trust.
As per the dea l at the c losing of the trans action, the trust will own 100% of the issued and paid up equity share capital of Reliance Jio lnfratel. The approval of the DoT is also subject to , amongst others , f oreign investors not being pr ovided any assured return on exit.
Engineering and construction giant Larsen and Toubro on Monday said it has completed the strategic divestment of its electrical and automation business to Schneider Electric.
The move will see India becoming the third largest country in terms of revenues for Schneider Electric.
With this, about 5,000 employees of Larsen and Toubro's electrical and automation business will be integrated with Schneider Electric's over 2,000 employees.
Though the size of the deal was not disclosed, L&T had inked a definitive pact with Schneider Electric in 2018 to sell its electrical and automation business for an all-cash consideration of Rs 14,000 crore, as part of its long-term strategy to exit non-core activities.
"Larsen and Toubro (L&T), India's leading engineering, technology, construction and financial services conglomerate, today announced the closure of the strategic divestment of its electrical and automation (E&A) business to Schneider Electric, a global player in energy management and automation," the company said in a statement.
The significant and complex divestment deal, one of its kind in India announced in May 2018, has been completed after receiving the requisite regulatory approvals and fulfilment of necessary conditions, it said.
The divestment is in line with L&T's stated goal of unlocking value for future growth.
L&T continuously evaluates its business portfolio and takes capital allocation decisions from a long-term perspective, the company said and added that its exit from the E&A Business is a part of the strategic portfolio review process.