The Essar Group will sell its telecom tower business to American Tower Corporation (ATC) for Rs 2,000 crore.
Transcend Infrastructure Ltd (TIL), an indirect wholly owned subsidiary of ATC on Wednesday entered into a definitive share purchase agreement with three companies of the Ruias-owned Essar Group to acquire the entire share capital of Essar Telecom Infrastructure Private Ltd (ETIPL) in an all-cash deal.
The transaction is subject to certain post closing adjustments and certain pre-completion requirements. The deal is expected to complete in three months, Essar group said in a statement.
ETIPL is one of India’s largest independent tower companies with a portfolio of approximately 4,450 wireless communications tower sites, including a number of towers under construction.
It operates across 12 of the 22 telecom circles in India and has an industry leading tenancy ratio of 1.8x.
“The addition of ETIPL to American Tower’s existing Indian operations will significantly strengthen our ability to serve our telecom customers; this will help them in enhancing their network coverage and in launching new technologies like 3G and WIMAX,” said Amit Sharma, executive vice president and president Asia of ATC.
“ETIPL is one of the pioneers in the wireless tower outsourcing business and has over the past few years built a substantial portfolio of well located towers, a marquee client base and one of the highest tenancy ratios in the business,” said Vikash Saraf, director strategy and M&A, Essar Group.