American Tower agrees to $2.5bn sale of ATC India to Data Infrastructure Trust

American Tower Corporation (NYSE: AMT) has signed a definitive agreement to sell its Indian operations, ATC India, to Data Infrastructure Trust (DIT), affiliated with Brookfield Asset Management (NYSE: BAM, TSX: BAM).

The transaction, valued at approximately INR 210 billion or $2.5 billion, is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2024.

This strategic move concludes American Tower’s review of its operations in India, representing a significant shift in its global portfolio.

The total cash proceeds include an enterprise value of approximately $2 billion for ATC India, plus an additional ticking fee accruing from October 1, 2023, until the closing date. The deal assumes the repayment of existing intercompany debt and the existing India term loan by DIT. Notably, American Tower will retain the full economic benefits associated with the optionally converted debentures (OCDs) issued by Vodafone Idea and is entitled to receive future payments related to existing ATC India receivables.

American Tower Corporation to sell Indian operations to Data Infrastructure Trust for $2.5 Billion

Proceeds from the transaction are earmarked to repay American Tower’s existing indebtedness. Citi is serving as the lead financial advisor, with CDX Advisors also providing financial advice. Talwar Thakore & Associates (TT&A) is the principal legal advisor to American Tower for this transaction.

American Tower is one of the largest global Real Estate Investment Trusts (REITs) and a leading independent owner, operator, and developer of multitenant communications real estate. The company boasts a portfolio of nearly 225,000 communications sites and has a significant presence in the U.S. data center market.

The sale of ATC India by American Tower Corporation to Data Infrastructure Trust marks a pivotal transaction in the global telecommunications industry. It not only reshapes American Tower’s operational focus but also highlights the evolving dynamics in telecom infrastructure investment and management, especially in high-growth markets like India.