Reliance Update On Transfer Of Optical Fiber Infrastructure
Reliance Industries Limited update on transfer of optic fibre cable infrastructure undertaking and tower infrastructure undertaking to SEBI registered infrastructure investment trusts.
1) Reliance Jio Infocomm Limited (“RJIL”), a subsidiary of the Company, dated 22nd March 2019 regarding approval of the Scheme of Arrangement by Hon’ble NCLT Ahmedabad for transfer of:
(a) optic fibre cable infrastructure undertaking to Jio Digital Fibre Private Limited(“JDFPL”); and
(b) tower infrastructure undertaking to Reliance Jio Infratel Private Limited(“RJIPL”).
2) On 31st March 2019, on coming into effect of the Scheme and consequent tothe transfer of these undertakings:-
(a) JDFPL has allotted equity shares for a value of Rs. 500 crore to theshareholders of RJIL; and
(b) RJIPL has allotted equity shares for a value of Rs. 200 crore to RJIL.
3) The Securities and Exchange Board of India, under the SEBI (InfrastructureInvestment Trusts) Regulations, 2014, has granted certificate of registration asInfrastructure Investment Trust to
(a) Digital Fibre Infrastructure Trust and
(b) Tower Infrastructure Trust, set up by Reliance Industrial Investments andHoldings Limited (“RIIHL”), a wholly-owned subsidiary of RIL as sponsor.
4) On March 31, 2019:-
(a) Digital Fibre Infrastructure Trust has acquired control of JDFPL bypurchasing 51% of the equity share capital of JDFPL for a consideration ofRs. 262.65 crore; and
(b) Tower Infrastructure Trust has acquired control of RJIPL by purchasing 51%of the equity share capital of RJIPL for a consideration of Rs. 109.65 crore.
5) The above transactions do not fall within related party transactions and none ofRIL’s promoter / promoter group / group companies have any interest in thetransaction.
6) This will result in significant deleveraging of the consolidated balance sheet ofthe Company as at 31st March 2019.