American Tower’s India operations, which include more than 75,000 towers, will be sold to Brookfield.
Telecom tower operator American Tower has announced that it will sell its India operations to a subsidiary of Brookfield Asset Management for ₹21,000 crore. American Tower is an American real estate investment company with a portfolio of communications infrastructure worth nearly 2.25 lakh crore and interconnected US data center infrastructure.
According to their website, they have over 75,000 towers in India, making them the largest business overseas. ATC serves all major telecommunications service providers in the country. DIT currently manages the assets of Brookfield’s telecommunications tower businesses in India through Summit Digitel and Crest Digitel. The ATC deal is Brookfield’s third telecommunications acquisition in the country in the past four years.
According to ATC’s statement issued on Thursday, the total cash proceeds from American Tower at closing, subject to certain pre-closing conditions, are likely to amount to about ₹21,000 crore at exchange rates current exchange.
“The transaction, which marks the culmination of the previously announced strategic review of American Tower’s India operations, is subject to customary closing conditions, including approval by governments and regulators, and is expected to close in the second half of 2024,” the press release said.
Total cash proceeds include an enterprise value for ATC India operations of approximately $2.0 billion as well as ongoing management fees from October 1, 2023 until the closing date.
The calculation of the resulting enterprise value takes into account the repayment of existing intercompany debt and the repayment or takeover of India’s existing term loan by DIT, it added.
In addition, as part of the potential cash proceeds noted above, American Tower will retain all economic interest in the convertible debentures issued by Vodafone Idea and will be entitled to Future payments relate to ATC India’s current receivables.
Proceeds from the transaction are expected to be used to repay American Tower’s existing debt, the release said.
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