Data Infrastructure Trust (DIT), sponsored by Brookfield Asset Management, has entered into a definitive agreement with American Tower Corporation (ATC) based in the United States to acquire the complete equity interests in ATC India.
On January 4, Moneycontrol initially reported that the prominent Canadian investor, Brookfield, had outpaced its rival, I Squared Capital, becoming the leading contender in a surprising turn of events in the final stages of the transaction.
American Tower Expands in India
DIT encompasses Brookfield’s telecom tower businesses in India under Summit Digitel and Crest Digitel. As per an official statement, the total cash proceeds to American Tower at the closing, contingent upon specific pre-closing terms, could potentially reach up to Rs 210 billion or $2.5 billion at current exchange rates. The transaction, marking the conclusion of the previously announced strategic review of American Tower’s operations in India, is subject to customary closing conditions, including government and regulatory approvals, with an anticipated closure in the second half of 2024.
The total cash proceeds comprise an enterprise value on the ATC India operations, approximately $2 billion, along with a ticking fee accruing from October 1, 2023, to the closing date. The proceeds linked to the enterprise value presuppose the repayment of existing intercompany debt and the settlement or assumption of the existing India term loan by DIT.
ATC India boasts a portfolio of around 78,000 sites across the nation. This marks Brookfield’s third foray into the Indian telecommunications sector. In 2022, the company acquired a portfolio of 5,000 indoor business solution sites and small cell sites, facilitating the advancement of 5G deployment and enabling telecom operators to expand their coverage in challenging-to-reach and densely populated areas.