American Tower to Sell Indian Operations to Canada's Brookfield for ₹21,000 Crore

American Tower, a prominent telecom tower operator, is set to offload its India operations to a Brookfield Asset Management affiliate for a staggering ₹21,000 crore. This strategic move involves the sale of over 75,000 towers, positioning it as American Tower's largest overseas business. The deal encompasses the Indian operations' enterprise value, amounting to approximately $2.0 billion, with additional considerations such as a ticking fee from October 1, 2023, to the closing date.

Brookfield's Summit Digitel and Crest Digitel currently manage its telecom tower ventures in India. This acquisition marks Brookfield's third foray into the Indian telecom sector over the past four years. The transaction is contingent on customary closing conditions, including regulatory approvals, and is expected to conclude in the second half of 2024, according to a statement from ATC.

The cash proceeds from the deal will play a pivotal role in repaying American Tower's existing debts, as outlined in the strategic review of its Indian operations. The total potential cash proceeds include the enterprise value, factoring in the repayment of intercompany debt and the settlement or takeover of the existing India term loan by DIT. Additionally, American Tower retains the full economic benefits associated with Vodafone Idea's optionally converted debentures and is entitled to future payments related to existing ATC India receivables.

This landmark transaction reflects the culmination of American Tower's comprehensive assessment of its operations in India, underscoring its commitment to financial prudence and strategic realignment.