American Tower to sell India operations to Canada's Brookfield for ₹21,000 crore

American Tower's India operations, consisting of over 75,000 towers, will be sold to Brookfield.

Published on: Jan 5, 2024, 10:35:22 IST

By HT News Desk

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Telecom tower operator American Tower has said it would sell its India operations to an affiliate of Brookfield Asset Management for ₹21,000 crore. American Tower is an American real estate investment firm with a portfolio of nearly 2.25 lakh communications infrastructure and interconnected footprint of the United States data centre facilities. It has more than 75,000 towers in India, becoming its largest overseas business, according to its website. ATC serves all the nation’s major telecom service providers.

DIT currently houses asset manage Brookfield’s telecom tower businesses in India through Summit Digitel and Crest Digitel. The ATC deal is Brookfield's third telecom acquisition in the country over the last four years.

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According to a statement from ATC on Thursday, total cash proceeds to American Tower at closing, subject to certain pre-closing terms, would potentially represent up to approximately ₹21,000 crore at today’s exchange rates.

"The transaction, marking the culmination 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 anticipated to conclude in the second half of 2024," the statement read.

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The total cash proceeds comprise an enterprise value for the ATC India operations of approximately $2.0 billion, along with a ticking fee accruing from October 1, 2023, to the closing date. The calculation of proceeds related to the enterprise value takes into account the repayment of existing intercompany debt and the repayment or assumption of the existing India term loan by DIT, it further added.

Additionally, as part of the total potential cash proceeds mentioned earlier, American Tower will retain the full economic benefit linked to the optionally converted debentures issued by Vodafone Idea and is entitled to future payments associated with existing ATC India receivables.

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The proceeds from the transaction are expected to be utilised for repaying American Tower’s existing indebtedness, the statement said.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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