Brookfield’s DIT to Acquire ATC India in USD 2 Billion Deal

Data Infrastructure Trust (DIT), an Infrastructure Investment Trust affiliated with Brookfield Asset Management, has inked an agreement to acquire a 100 percent equity stake in American Tower Corporation’s Indian operations (ATC India). The transaction is valued at around Rs 16,500 crore (approximately USD 2 billion), plus a ticking fee that accrues from October 1, 2023, to the date of closing. DIT currently houses Brookfield’s telecom tower businesses in India through Summit Digitel and Crest Digitel.

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Also Read: ATC Takes USD 322 Million Goodwill Impairment Charge for India Unit

Deal Overview

According to ATC, “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.”

“Furthermore, and considered within the total potential cash proceeds above, American Tower will retain the full economic benefit associated with the optionally converted debentures (OCDs) issued by Vodafone Idea and will be entitled to receive future payments related to existing ATC India receivables. Proceeds from the transaction are expected to be used to repay American Tower’s existing indebtedness,” ATC added.

ATC said the transaction reflects the completion of the previously announced strategic review of American Tower’s operations in India. ATC India boasts a portfolio of around 78,000 sites across the country, marking Brookfield’s third acquisition in the Indian telecom space. The deal, subject to regulatory approvals, is expected to conclude in the second half of 2024, pending pre-closing conditions specified in the securities purchase agreement.