Since launching operations in India in 2007, ATC India’s portfolio has expanded to approximately 75,000 towers. The firm has a national presence and services all major telecom service providers in the countryBrookfield Asset Management-sponsored Data Infrastructure Trust has signed a definitive agreement with the US-based American Tower Corporation to acquire 100 percent equity interests in ATC India.
Moneycontrol was the first to report on January 4 that top Canadian investor Brookfield had pipped rival suitor I Squared Capital and emerged as the lead contender in a twist in the last leg of the transaction.
DIT houses Brookfield’s telecom tower businesses in India through Summit Digitel and Crest Digitel. According to an official statement, total cash proceeds to American Tower at closing, subject to certain pre-closing terms, would potentially represent up to Rs 210 billion, or $2.5 billion, at today’s exchange rates. The transaction, which reflects the completion of the previously announced strategic review of American Tower’s operations in India, is subject to customary closing conditions, including government and regulatory approvals, and is expected to close in the second half of 2024.
Total cash proceeds include an enterprise value on the ATC India operations of approximately $2 billion, plus a ticking fee that accrues from October 1, 2023, to the date of closing. Proceeds associated with the enterprise value assume the repayment of existing intercompany debt and the repayment, or assumption, of the existing India term loan, by DIT.
Considered within the total potential cash proceeds, 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.
Citi is serving as lead financial advisor and CDX Advisors is serving as the financial advisor to American Tower. Talwar Thakore & Associates (TT&A) is serving as principal legal advisor to American Tower.
ASHWIN MOHAN is Editor (Deals) at Moneycontrol and leads the M&A, private equity and equity capital market transactions coverage. He anchors the video show 'Deal Central ' and tweets at @ashwinmohansays. He has previously worked with ET NOW, CNBC TV-18 and The Times of India.
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