DIT 100% acquisition in ATC TIPL to close in H2 2024

American Tower Corporation has informed the US Securities and Exchange Commission that the company, through its subsidiaries, ATC Asia Pacific Pte. Ltd. and ATC Telecom Infrastructure Private Limited (“ATC TIPL”), which holds the operations in India, consistent with its previously disclosed exploration of strategic alternatives for the company’s operations in India, has entered into an agreement with Data Infrastructure Trust (“DIT”), an infrastructure investment trust sponsored by an affiliate of Brookfield Asset Management, pursuant to which DIT will acquire a 100% ownership interest in ATC TIPL (the “Pending ATC TIPL Transaction”). The company will retain the full economic benefit associated with the optionally convertible debentures issued by a customer in India, Vodafone Idea Limited (the “VIL OCDs”), and rights to payments on certain existing customer receivables. Subject to certain pre-closing terms, total aggregate consideration would potentially represent up to approximately 210 billion Indian Rupees (approximately $2.5 billion), including the value of the VIL OCDs, payments on certain existing customer receivables, the repayment of existing intercompany debt and the repayment, or assumption, of the company’s existing term loan in India, by DIT. Additionally, 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.

Also, Q4 2023 and FY 2023 growth rates impacted by impairment charges of $205 million and $604 million, respectively, in the current period as compared to impairment charges of $642 million and $656 million, respectively, in the prior-year periods, primarily in India. Impairment charges for the three months ended December 31, 2023 include a goodwill impairment charge of $80 million related to the company’s Spain reporting unit due to an increase in the weighted average cost of capital in such unit. For the twelve months ended December 31, 2023, impairment charges include the recognition of goodwill impairment charges of $402 million related to the company’s Spain and India reporting units.

CT Bureau