Brookfield to acquire ATC India’s biz for Rs 21,000 cr

New Delhi, January 5

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Canadian firm Brookfield is set to acquire the Indian business of American Tower Corporation (ATC), in a mega $2.5-billion deal that includes $2 billion enterprise value on ATC India alongside a ‘ticking fee’ accruing from October 1, 2023. The transaction is subject to regulatory approvals and expected to close in the second half of 2024.

All-cash deal

• The $2.5-billion transaction is an all-cash deal that includes $2 billion enterprise value of ATC India and a ‘ticking fee’ accruing from October 1, 2023
• ATC India has a portfolio of approximately 78,000 sites across India
• Brookfield also has a portfolio of nearly 1,75,000 towers that were acquired in 2020 from Reliance Industrial Investments and Holdings Ltd

“Data Infrastructure Trust (DIT), an Infrastructure Investment Trust sponsored by an affiliate of Brookfield Asset Management, today announced the signing of an agreement with ATC to acquire 100% of the equity interests in American Tower’s operations in India (ATC India), for an enterprise value of Rs 16,500 crore ($2 billion) which is subject to pre-closing terms as per the securities purchase agreement,” a statement by the DIT said. ATC India has a portfolio of approximately 78,000 sites across India.

A statement by ATC said total cash proceeds to American Tower at closing, subject to certain pre-closing terms, would potentially represent up to approximately Rs 21,000 crore or $2.5 billion at current exchange rates.

Proceeds associated with the enterprise value assume the repayment of existing inter-company debt and the repayment, or assumption, of the existing India term loan, by DIT.

“Furthermore, and considered within the total potential cash proceeds above, American Tower will retain the full economic benefit associated with the optionally converted debentures (OCDs) issued by Vodafone Idea and will be entitled to receive future payments related to existing ATC India receivables. Proceeds from the transaction are expected to be used to repay American Tower’s existing indebtedness,” ATC said.