Boston-based American Tower Corp. has signed a $2.5 billion deal to sell its operations in India to Data Infrastructure Trust (DIT), an affiliate of Canada-based global investment firm Brookfield Asset Management.
DIT houses Brookfield’s telecom tower businesses in India through Summit Digitel and Crest Digitel.
The deal, which is subject to regulatory clearances, is expected to close in the second half of the calendar year.
“Total cash proceeds to American Tower at closing, subject to certain pre-closing terms, would potentially represent up to ₹21,000 crore, or $2.5 billion at today’s exchange rates, a statement said.
American Tower, which began operations in India in 2007, has grown its portfolio to more than 75,000 towers, making it the largest business outside of the US, according to its website.
One of the largest global real estate investment trusts, American Tower owns, operates and develops communications real estate with a portfolio of nearly 225,000 communications sites and data center facilities.
The company provides services to all major telecom service providers in the country.
Total cash proceeds include an enterprise value on the ATC India operations of about $2 billion (₹16,500 crore), plus a ticking fee that accrues from 1 October 2023 to the date of closing, the statement added.
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 issued by Vodafone Idea and will be entitled to receive future payments related to existing ATC India receivables, the statement added.
Proceeds from the transaction are expected to be used to repay American Tower’s existing debt.
Citi was lead financial advisor and CDX Advisors the financial advisor to American Tower, while Talwar Thakore and Associates was principal legal advisor to American Tower.
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