American Tower Corp AMT inked a deal with Data Infrastructure Trust (DIT) to sell all equity interests in India's operations for about INR 210 billion ($2.5 billion).
DIT is an Infrastructure Investment Trust from an affiliate of Brookfield Asset Management Ltd BAM and currently houses BAM's telecom tower businesses in India through Summit Digitel and Crest Digitel.
The deal is at par with AMT's previously disclosed strategic review of its operations in India.
The transaction is subject to customary closing conditions, including government and regulatory approvals, and is expected to close in the H2 FY24.
Post closure, American Tower will retain the full economic benefit related to the optionally converted debentures (OCDs) issued by Vodafone Idea and will be entitled to receive future payments related to existing Indian operations' receivables.
The cash proceeds from the deal include an enterprise value on the ATC India operations of about $2.0 billion, plus a ticking fee that accrues from October 1, 2023, to the date of closing, and AMT plans to use the proceeds to repay debt.
As of September 30, 2023, the company had total liquidity of around $9.7 billion, consisting of about $2.1 billion in cash and cash equivalents plus the ability to borrow an aggregate of about $7.6 billion under its revolving credit facilities, net of any outstanding letters of credit.
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Price Action: AMT shares closed higher by 0.36% at $215.46 on Thursday.
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