By Canada-based Brookfield is set to acquire the Indian business of American Tower Corporation (ATC) in a landmark deal valued at USD 2 billion, as announced on Friday in New Delhi. The transaction, subject to regulatory approvals, is anticipated to be finalized in the latter half of 2024.
Deal Details
The Data Infrastructure Trust (DIT), an Infrastructure Investment Trust sponsored by Brookfield Asset Management’s affiliate, has inked an agreement with ATC to procure 100% equity interests in ATC India. The acquisition is valued at Rs 16,500 crore (USD 2 billion) based on enterprise value, subject to pre-closing terms outlined in the securities purchase agreement.
ATC India’s Portfolio
ATC India boasts a robust portfolio comprising approximately 78,000 sites spread across the country, making it a significant player in India’s telecommunications infrastructure landscape.
Brookfield’s Presence in Indian Telecom Sector
This marks Brookfield’s third major acquisition in India’s telecommunications domain. In 2022, Brookfield acquired a portfolio of 5,000 indoor business solution sites and small cell sites, reinforcing the rollout of 5G technology and facilitating extended coverage capacity for telecom operators, especially in challenging terrains.
Moreover, Brookfield’s portfolio includes nearly 175,000 towers acquired in 2020 from Reliance Industrial Investments and Holdings Ltd, further solidifying its foothold in the Indian telecom market.
Integration into DIT
Following the acquisition, ATC India will be integrated into DIT, augmenting the existing telecommunications assets within the trust.
Brookfield’s Commitment
Arpit Agrawal, Managing Director and Head of Infrastructure for India and the Middle East at Brookfield, expressed enthusiasm about expanding and enhancing the telecom tower portfolio in India. He emphasized the importance of such acquisitions in empowering digital connectivity and reshaping the telecom infrastructure landscape across the region.
Brookfield’s Presence in India
Brookfield’s investment in ATC India underscores its significant presence in India, with approximately USD 25 billion in assets under management spanning Infrastructure, Real Estate, Renewable Power & Transition, and Private Equity sectors.
As Brookfield strengthens its position in India’s telecom sector through strategic acquisitions like ATC India, it reaffirms its commitment to driving digital connectivity and fostering growth in the telecommunications infrastructure sector.
