Indian conglomerate Reliance Industries Ltd. sealed a deal to sell the tower arm of its mobile unit Reliance Jio Infocomm Ltd. to Canada-based infrastructure company Brookfield Infrastructure Partners LP.

Following a preliminary agreement in July, Reliance Industrial Investments and Holdings Ltd. announced it has now entered into binding agreements for Brookfield and its institutional partners for a 100% stake in Reliance Jio Infratel Pvt. Ltd., which operates approximately 130,000 communication towers.

The total equity requirement is US$3.7 billion, of which Brookfield will invest about US$375 million, with the balance being funded by its institutional partners.

Sam Pollock, CEO of Brookfield Infrastructure, said the towers have so far only carried Reliance Jio equipment, but there is further growth potential by co-locating equipment from other mobile network operators. A build-out program is expected to bring the portfolio to approximately 175,000 towers.

Closing of the transaction is subject to certain regulatory approvals, which are expected soon.