I Squared Capital is set to acquire a significant majority stake in the India unit of Boston-based American Tower Corp (ATC). The deal values ATC India at around $1.5-$1.75 billion.
The company has finalized the terms to acquire around 65% stake in ATC Telecom Infrastructure Pvt Ltd (ATC-TIPL), the Indian unit of ATC. The deal is expected to close in the next few weeks.
The acquisition will make I Squared Capital one of the largest tower infrastructure providers in India. ATC India has a portfolio of over 13,000 towers and a strong presence in the country’s fast-growing telecom market.
In the September quarter, ATC recorded $322 million in goodwill impairment charges associated with its India business. After the impairment, the book value of the Indian operations is around $2.2 billion based on its internal impairment review analysis, discounted cash flow, and cost of capital.
ATC India is the third-largest independent telecom tower company in India, both in terms of the number of towers and tenants, and has a significant presence in all the telecom circles. The company has acquired several towers to increase its footprints in India along with its market share. ATC India’s portfolio has expanded to over 77,000 sites and has cornered a telecom tower market share of around 17 per cent.