Brookfield concludes ATC India buyout, pips Indus to become India’s top tower company

Data Infrastructure Trust (DIT), an Infrastructure Investment Trust sponsored by Canada’s Brookfield Asset Management along with affiliates of investors, including British Columbia Investment Management Corporation (BCI) and GIC, has concluded the 100% acquisition of American Tower Corp’s India unit (ATC India).

With the closure of the ATC India buyout, Brookfield has pipped Indus Towers to become India’s largest telecom tower company, with a 257,000-strong portfolio. Brookfield’s telecoms infrastructure portfolio will be housed under a new brand name Altius.

Bharti Airtel subsidiary Indus Towers, which was previously India’s top telecom tower company, had 2,25,910 towers in the fiscal first quarter, ending June 2024.

ET had first reported in March 2023 about Brookfield’s interest in ATC India. In its April 27 edition last year, ET said Brookfield was exploring a full buyout of the unit.

The Brookfield-led consortium’s tower portfolio in India is also the largest platform globally ex-China. “With this acquisition, the Brookfield-led consortium reinforces its commitment to connecting India with an expanded portfolio of 2,57,000 telecom sites,” Brookfield said in an official statement Thursday.

The Canadian multinational added that the 100% acquisition of ATC India has been approved by the Competition Commission of India (CCI). It comprises the buyout of roughly 76,000 communications sites in India for an enterprise value of Rs 18,200 crore ($2.2 billion). “Our expertise, rooted in our history as an owner and operator of high-quality businesses, is exemplified by our acquisition of ATC India. It complements our existing business and further strengthens our footprint, creating the largest tower portfolio in the country and one of the largest platforms globally,” Arpit Agrawal, managing partner, head of infrastructure (India & Middle East) at Brookfield said in a media statement.

Back in January 2024, Brookfield had initially announced that it had acquired 100% of ATC India in an all-cash deal that was expected to close in the second half of 2024. The acquisition had marked the Boston-based ATC’s exit from India.

Back in February 2023, ATC had informed the US Securities and Exchange Commission that it was exploring strategic alternatives, including the sale of an equity stake in its India operations, amid a challenging business environment here. That was after loss-making Vodafone Idea (Vi), ATC’s biggest India client, had said it won’t resume full contractual payments of what it then owed the tower firm.

At present Brookfield-backed DIT houses Summit Digitel and Crest Digitel and is managed by its Investment Manager, Data Link, an affiliate of Brookfield. “With this acquisition, Summit Digitel, Crest Digitel, and ATC India will be combined under the new brand name, Altius,” Brookfield said.

It added that the new brand embodies the organisation’s commitment to developing and managing the highest quality telecom infrastructure that fuels progress and innovation for connecting India. “This expanded telecom infrastructure footprint will ensure Altius is well positioned to provide a broader array of solutions to India’s telecom ecosystem.”

Munish Seth, Group Managing Director, Data Link, said Brookfield’s enhanced digital connectivity will play a crucial role in transforming India’s telecom infrastructure. “The acquired sites diversify Altius’ revenue streams, creating value for our unit holders, while our scale, operational strength, and innovative capabilities position us to meet the evolving needs of the Indian telecom market and create long-term value for all stakeholders.”

This is Brookfield’s third acquisition in the Indian telecoms space. It already has a portfolio of roughly 175,000 towers acquired in 2020 from Reliance Industrial Investments and Holdings Ltd.

In 2022, the Canadian global alternative asset manager had acquired a portfolio of 6,300 indoor business solution sites and small cell sites, which advances the rollout of 5G and enables telecom operators to extend their coverage capacity in difficult-to-access and dense areas.

In India, Brookfield has roughly $29 billion in assets under management across Infrastructure, Real Estate, Renewable Power & Transition and Private Equity.