Brookfield Asset Management-sponsored Data Infrastructure Trust (DIT) has signed a definitive agreement with the US-based American Tower Corporation (ATC) to acquire a 100 per cent equity stake in ATC India.
The total cash proceeds to ATC at closing, subject to certain pre-closing terms, would potentially represent up to Rs 210 billion ($2.5 billion). This includes an enterprise value on the ATC India operations of approximately $2 billion, 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.
The transaction, which reflects the completion of the previously announced strategic review of ATC’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.
Considered within the total potential cash proceeds, ATC will retain the full economic benefit associated with the optionally converted debentures (OCDs) issued by Vi 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 ATC’s existing indebtedness.
Citi is serving as the lead financial advisor and CDX Advisors is serving as the financial advisor to ATC for this deal.
