American Tower to sell India operations to Brookfield Asset Management for $2.5B

American Tower (AMT) has signed a definitive agreement with Data Infrastructure Trust, or DIT, an Infrastructure Investment Trust sponsored by an affiliate of Brookfield Asset Management (BAM), pursuant to which DIT will acquire 100% of the equity interests in American Tower’s operations in India, or ATC India. DIT currently houses Brookfield’s telecom tower businesses in India through Summit Digitel and Crest Digitel. Total cash proceeds to American Tower at closing, subject to certain pre-closing terms, would potentially represent up to approximately INR 210B, or $2.5B at today’s exchange rates. The transaction, which reflects the completion of the previously announced strategic review of American Tower’s operations in India, is subject to customary closing conditions, including government and regulatory approvals, and is expected to close in the second half of 2024. Total cash proceeds include an enterprise value on the ATC India operations of approximately $2B, plus a ticking fee that accrues from October 1, 2023, to the date of closing. 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, or 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.