American Tower Corporation (ATC) has recorded a goodwill impairment charge worth $322 million for its India unit during the calendar year 2023, amid continuing business challenges in the country.
In a regulatory filing to the US Securities and Exchange Commission (SEC), ATC said that during the year ended December 31, 2023, the company suffered goodwill impairments of $322 million related to India and $80 million related to Spain, for a total of $402 million. ATC added that it performed its annual goodwill impairment test as of December 31, 2023, and the results indicated that the carrying amount of the company’s India reporting unit exceeded its estimated fair value, resulting in a goodwill impairment charge of $322 million.
Further, ATC informed that the carrying value of tenant-related intangible assets in India was $344.8 million as of December 31, 2023, which represented 3 per cent of its consolidated balance of $12.2 billion. The carrying values of its tower portfolio and network location intangible assets in India were $916.2 million and $243.6 million, respectively, which represented 10 per cent and 8 per cent of its consolidated balances of $8.8 billion and $3.2 billion, respectively.
In the SEC filing, ATC said it had initiated a strategic review of its India business last year, evaluating the appropriate level of exposure to the Indian market within its global portfolio of communication assets, and assessed opportunities to repurpose capital to drive long-term shareholder value and sustained growth. As per the company, the strategic review concluded in January 2024 with its signed agreement with Data Infrastructure Trust (DIT), an infrastructure investment trust sponsored by Brookfield Asset Management, pursuant to which DIT would acquire 100 per cent ownership interest in ATC Telecom Infrastructure Private Limited (ATC TIPL) for a total aggregate consideration of up to Rs 210 billion (approximately $2.5 billion). The pending ATC TIPL transaction is expected to close in the second half of 2024, subject to customary closing conditions, including government and regulatory approval.
