American Tower Corporation to Sell Indian Operations to Brookfield for USD 2.5bn

American Tower Corporation (AMT), a leading global Real Estate Investment Trust (REIT), has concluded a strategic review, culminating in an agreement to divest its operations in India. The buyer, Data Infrastructure Trust (DIT), is backed by an affiliate of the global investment giant Brookfield Asset Management.

Under the terms of the transaction, DIT will acquire a 100% equity interest in ATC India, American Tower’s subsidiary in India, for total cash proceeds potentially amounting to approximately INR 210bn (USD 2.5bn). This deal places the enterprise value of ATC India’s operations at about USD 2.0bn and includes a ticking fee that accrues from October 1, 2023.

The total consideration of proceeds includes repayment of existing intercompany debt and the repayment or assumption of the existing India term loan, by DIT. Also, AMT will maintain the full economic benefits stemming from the optionally converted debentures (OCDs) issued by Vodafone Idea. Additionally, it will continue to receive future payments related to existing ATC India receivables.

The closure of this transaction, anticipated in the second half of 2024, hinges on satisfying customary conditions, including securing necessary government and regulatory consents.

The proceeds from this divestiture are earmarked for the repayment of AMT’s existing debt.

ATC India provides tower infrastructure and rooftop solutions, telecom equipment installation, antenna systems, and fibre connectivity. Since launching operations in 2007, ATC India’s portfolio has expanded to approximately 75,000 towers.

DIT houses Brookfield’s telecom tower businesses in India through Summit Digitel and Crest Digitel.

Brookfield has over 900bn in assets across various investment categories with operations in over 30 countries across five continents.

AMT is as one of the largest REITs globally, engages in the ownership, operation, and development of multi-tenant communications real estate. It has a portfolio of about 225,000 communications sites, alongside a substantial presence in the U.S. data center market.

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Original source: EMIS M&A Dealwatch