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.
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.
Brookfield's Past Acquisitions
This move follows Brookfield's 2022 acquisition of 5,000 indoor business solution sites and small cell sites, facilitating 5G deployment and enabling telecom operators to extend their capacity to difficult-to-access areas and dense areas. Brookfield also has the portfolio of 2020 acquisition of approximately 175,000 towers from Reliance Industrial Investments and Holdings Limited.
DIT Expansion
"ATC India will be included in DIT, which includes the existing telecommunications assets. The acquired sites are expected to diversify DIT's revenues and increase touch points with all mobile network operators in India," Brookfield said.
Arpit Agrawal, Managing Director and head of Infrastructure for India and Middle East at Brookfield said, "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. Through strategic acquisitions like ATC India, we remain deeply committed to empowering digital connectivity and transforming the telecom infrastructure landscape across the region."
In India, Brookfield has approximately USD 25 billion in assets under management across Infrastructure, Real Estate, Renewable Power and Transition and Private Equity.
