In a significant move, Brookfield Asset Management-sponsored Data Infrastructure Trust (DIT) has entered into a definitive agreement with American Tower Corporation (ATC) to acquire 100 percent equity interests in ATC India. This deal, saw Brookfield emerging as the lead contender, surpassing rival suitor I Squared Capital.
DIT, through its subsidiaries Summit Digitel and Crest Digitel, houses Brookfield’s telecom tower businesses in India. As per an official statement, the total cash proceeds to American Tower at closing, potentially representing up to Rs 210 billion or $2.5 billion at current exchange rates, is subject to customary closing conditions and is expected to finalize in the second half of 2024.
The transaction includes an enterprise value on the ATC India operations of approximately $2 billion, along with a ticking fee accruing from October 1, 2023, to the date of closing. Brookfield’s acquisition of ATC India, with a portfolio of around 78,000 sites across the country, marks its third venture into the Indian telecommunications space. In 2022, it acquired a portfolio of 5,000 indoor business solution sites and small cell sites, contributing to the 5G rollout.
Arpit Agrawal, Managing Director and Head of Infrastructure for India and the Middle East at Brookfield, expressed the company’s commitment to expanding and enhancing its telecom tower portfolio in India. The acquisition is expected to diversify DIT’s revenues and increase touchpoints with all mobile network operators in India.
The deal comes after ATC informed the US Securities and Exchange Commission (SEC) in October about a $322-million goodwill impairment charge for its India unit due to delayed payments from Vodafone Idea, one of its main vendors.
American Tower will retain the economic benefit associated with optionally converted debentures (OCDs) issued by Vodafone Idea. Citi is the lead financial advisor, CDX Advisors is the financial advisor, and Talwar Thakore & Associates (TT&A) is the principal legal advisor to American Tower. S&R Associates represented Brookfield-backed DIT.
