Brookfield to buy American Tower Corp’s India business for $2 bn

Brookfield Asset Management on Friday said it will acquire the Indian business of American Tower Corporation (ATC India) for $2 billion as it looks to expand its portfolio of telecommunication services. Brookfield through its infrastructure investment trust, Data Infrastructure Trust (DIT), has acquired 100% stake in ATC which is subject to pre closing terms as per the securities purchase agreement.

The deal which marks the asset manager’s third acquisition in the telecommunication space is expected to give Brookfield access to ATC India’s vast portfolio of about 78,000 sites across the country. “We look forward to expanding and enhancing our existing telecom tower portfolio in India, which enables a broader array of solutions for our customers and partners," Brookfield’s managing director, head of infrastructure, India & Middle East, Arpit Agrawal, said in the statement.

ATC India will be included in DIT, which currently houses Brookfield’s telecom tower businesses in India through Summit Digitel and Crest Digitel. The acquired assets are expected to diversify DIT’s revenues and increase touch points with all mobile network operators in India. “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," ATC said in its release.

According to the firm, 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. American Tower will retain the full economic benefit associated with the optionally converted debentures (OCDs) issued by and will be entitled to receive future payments related to existing ATC India receivables, it said.

“Proceeds from the transaction are expected to be used to repay American Tower’s existing indebtedness." The acquisition further diversifies Brookfield’s existing portfolio of about 175,000 towers it acquired from Reliance Industrial Investments in 2020. In 2022, the asset manager also acquired a portfolio of 5,000 indoor business solution sites and small cell sites, which advances the rollout of 5G and enables telecom operators to extend their coverage capacity in difficult to access and dense areas.

The agreement comes at a time when India has witnessed a growing number of tech savvy internet users driven by an increase in accessibility coupled with a greater penetration of affordable mobile devices and government driven initiatives. Overall, in India, Brookfield has about $25 billion in assets under management across infrastructure, real estate, renewable power & transition and private equity, the statement said.

The transaction, which is awaiting regulatory approvals, is expected to close in the second half of this year. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.