(FE)
In a mega M&A deal in the telecom tower space, Brookfield Asset Management on Friday said that it will acquire 100% stake in American Tower Corporation’s (ATC) India business for $2.5 billion (Rs 21,000 crore), which includes $2 billion (Rs 16,500 crore) enterprise value along side a ‘ticking fee accruing from October 1, 2023.
Earlier, Miami-based infrastructure investment group, I Squared Capital was in talks to acquire ATC’s tower assets in India at an enterprise value of around $1.5-$1.75 billion. The acquisition, which Brookfield is doing via its affiliate Data Infrastructure Trust (DIT), will make it the largest telecom tower operator in India, surpassing Indus Towers.
The deal, which is expected to close in the second half of 2024, subject to regulatory approvals, comes at a time when ATC India has been facing difficulties in running the tower business owing to dependency largely on just two telecom operators. Its largest client Vodafone Idea was defaulting on payments owing to its weak financial condition.
ATC took a $322-million (about Rs 2,700 crore) goodwill impairment charge for its India unit in the July-September quarter owing to the challenging business environment in the country. Brookfield in its affiliate DIT already owns two tower companies – Summit Digitel and Crest Digitel. ATC, which is Brookfield’s third acquisition in the Indian telecom tower space, will also be included in DIT.
With ATC’s 78,000 towers and Brookfield’s earlier held 175,000 towers, the company will have a total tower strength of 253,000 towers, compared to Indus Towers’ 204,000 towers. The acquired sites are expected to diversify DIT’s revenues and increase touch points with all mobile network operators in India, Brookfield said.
