In Short:
Data Infrastructure Trust (DIT), backed by Canada’s Brookfield Asset Management, has acquired American Tower Corp’s India unit, ATC India, for $2.2 billion. This deal makes Brookfield the largest telecom tower company in India, with 257,000 towers, surpassing Indus Towers. The new telecom brand will be called Altius, combining existing operations to enhance digital connectivity in India’s telecom ecosystem.
Brookfield’s Acquisition of ATC India Positions it as India’s Largest Telecom Tower Company
Data Infrastructure Trust (DIT), an Infrastructure Investment Trust sponsored by Brookfield Asset Management along with affiliates such as British Columbia Investment Management Corporation (BCI) and GIC, has successfully completed the acquisition of American Tower Corp’s India unit, known as ATC India, with a 100% buyout.
Acquisition Implications
The closure of the ATC India transaction positions Brookfield ahead of Indus Towers to become the largest telecom tower operator in India, boasting a portfolio of 257,000 towers. The telecommunications infrastructure assets will be consolidated under a new brand, Altius.
Prior to this acquisition, Indus Towers was the leading player in the sector, with 225,910 towers recorded in the fiscal first quarter ending June 2024. ET reported in March 2023 that Brookfield was eyeing ATC India and confirmed that discussions were underway for a full buyout by April 27 of the same year.
Global Positioning
The tower portfolio overseen by the Brookfield-led consortium is regarded as the largest in the world outside of China. In a statement, Brookfield emphasized that the acquisition signifies its commitment to enhancing connectivity in India by expanding the portfolio to 257,000 telecom sites.
Regulatory Approval and Financial Details
The acquisition of ATC India has received approval from the Competition Commission of India (CCI), involving the purchase of approximately 76,000 communication sites with an enterprise valuation of Rs 18,200 crore (approximately $2.2 billion).
Company Statements
Arpit Agrawal, Managing Partner and Head of Infrastructure (India & Middle East) at Brookfield, remarked, “Our expertise, rooted in our history as an owner and operator of high-quality businesses, is exemplified by our acquisition of ATC India. This acquisition complements our existing business and further strengthens our footprint, creating the largest tower portfolio in the country and one of the largest platforms globally.”
Initially announced in January 2024, the acquisition entailed an all-cash deal projected to finalize in the latter half of 2024, marking ATC‘s exit from the Indian market.
Background of ATC’s Decision
In February 2023, ATC disclosed to the US Securities and Exchange Commission its exploration of strategic alternatives, including selling an equity stake in its Indian operations, primarily due to a challenging business landscape. This announcement followed Vodafone Idea’s decision, as ATC’s largest Indian client, to halt full contractual payments owed.
Future Prospects
DIT under Brookfield’s management currently includes Summit Digitel and Crest Digitel, with plans to integrate ATC India into the new brand, Altius. This brand reflects the organization’s commitment to developing and managing high-quality telecom infrastructure essential for India’s progress.
Munish Seth, Group Managing Director of Data Link, stated that the expanded digital footprint would be crucial for evolving India’s telecom infrastructure. He noted, “The acquired sites diversify Altius’ revenue streams, creating value for our unit holders while positioning us to meet the evolving needs of the Indian telecom market.”
This acquisition marks Brookfield’s third foray into the Indian telecom sector, adding to its prior acquisitions of approximately 175,000 towers from Reliance Industrial Investments and Holdings Ltd. in 2020, and 6,300 sites for indoor business solutions to facilitate 5G rollout in 2022.
As a whole, Brookfield manages around $29 billion in assets in India, spanning various sectors including Infrastructure, Real Estate, Renewable Power & Transition, and Private Equity.
