Canada-based Brookfield Asset Management to buy ATC India in $2 bn deal

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Canada-based Brookfield Asset Management will acquire the Indian business of American Tower Corporation (ATC) for an enterprise value of Rs 16,628 crore ($2 billion), the company said on Friday. After its third acquisition in India’s telecom sector in four years, Brookfield is set to become the largest manager of telecom towers in the country.


The deal will see Data Infrastructure Trust (DIT), an infrastructure investment trust sponsored by an affil-iate of Brookfield Asset Management, acquire 100 per cent of equity interests in ATC India. DIT currently houses Brookfield’s telecom tower businesses in India through Summit Digitel and Crest Digitel.  “The acquired sites are expected to diversify DIT’s revenues and increase touch points with all mobile network operators in India,” Brookfield said.


A release by ATC said total cash proceeds to American Tower at closing, subject to certain pre-closing terms, would potentially represent up to approximately Rs 21,000 crore or $2.5 billion at current exchange rates. Since launching in 2007, ATC India has built up a large portfolio of approximately 78,000 tower sites across the country.

 


Brookfield also has a portfolio of roughly 175,000 towers that were acquired in 2020 from Reliance Industrial Invest-ments and Holdings Limited. Reliance Jio is the anchor client for Brookfield.


The combined entity is expected to have over 253,000 towers, trumping the current market leader Indus Towers and its 204,000 tower sites as of the quarter ending September 2023.


“This consolidation was always on the cards. Looking at the consumer industry, there are only three players. A fragmented tower industry would not have been beneficial,” Ankit Jain, Vice President and Sector Head at ICRA said. Jain said it remains to be seen how Brookfield consolidates its tower assets. He pointed out that while Brookfield’s Summit Digitel largely has tenancies with Reliance Jio, ATC India has a relatively more diversified portfolio.




Strong signals

 


 100% equity interests in ATC India to be acquired by Data Infrastructure Trust, which is sponsored by an affiliate of Brookfield 


Asset Management

 


 78,000 tower sites across the country with ATC India since its launch in 2007

 


  175,000 towers with Brookfield. These towers were acquired in 2020 from Reliance Industrial Investments and Holdings

 


  204,000 towers sites with Indus Towers

First Published: Jan 05 2024 | 7:54 PM IST