American Tower Corp Explores Options for its Indian Unit

American Tower Corp (ATC) is reportedly considering a sale of its wholly owned Indian unit, ATC Telecom Infrastructure Pvt Ltd (ATC TIPL), after its efforts to sell a 50% stake failed to attract any buyers. The tower company is said to be open to selling a majority stake or even 100% ownership and exiting the country.

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According to an ET report, ATC has re-engaged with Canada’s Brookfield, which is evaluating a full buyout and has held separate discussions with US infrastructure fund Stonepeak Partners. It has also approached Macquarie and KKR & Co through its advisors, although discussions with the latter two are believed to have been lukewarm.

Stonepeak, with $55 billion of assets under management, has no presence in India, but it is a stakeholder in ATC’s US data-centre business. It has also backed wireless infrastructure ventures such as Vertical Bridge and Globe Telecom Towers in the Philippines. It is not yet clear if Stonepeak is looking for a full 100% acquisition or majority control.

Brookfield, on the other hand, already owns Summit Digitel, which houses the telecom towers acquired from Reliance Jio. The company is believed to be interested in a 100% acquisition of ATC TIPL, although valuations remain a sticking point.

Read More – ATC Warns Potential Hit to India Unit’s Financial Results due to Vi Payment Shortfalls

ATC is looking for an enterprise value upwards of $4 billion for its Indian unit, largely due to its strong India tower assets portfolio, which stood at 76,826 towers as of December 2022. However, potential buyers are unwilling to pay any control premium and are negotiating for a $2.8-3.0 billion valuation. They are reportedly concerned about the sustainability of the tenancy revenue inflows in the future, given the continuing financial struggles of Vodafone Idea (Vi), ATC’s biggest customer in India.