Transcend Infrastructure Limited (TIL), a subsidiary of American Tower Corporation, has agreed to acquire Essar Telecom Infrastructure (ETIPL) in an all cash deal.
American Tower said that the deal for the towers company was worth Rs20bn (US$432m) in…
Transcend Infrastructure Limited (TIL), a subsidiary of American Tower Corporation, has agreed to acquire Essar Telecom Infrastructure (ETIPL) in an all cash deal.
American Tower said that the deal for the towers company was worth Rs20bn (US$432m) in equity and assumed debt. For American Tower, this represents a third acquisition in the Indian tower space having already bought Xcel Telecom and Trancend.
ETIPL is one of India’s largest independent tower companies with a portfolio of approximately 4,450 wireless communications tower sites including a number of towers under construction. They operate across 12 of the 22 telecom circles in India and have an industry leading tenancy ratio of 1.8x.
Barclays Capital is acting as financial adviser to Essar.
Commenting on the Transaction Amit Sharma, Executive Vice President and President Asia of ATC said: “The addition of ETIPL to American Tower’s existing Indian operations will significantly strengthen our ability to serve our telecom customers; this will help them in enhancing their network coverage and in launching new technologies like 3G and WIMAX.”
The deal is subject to certain pre-completion requirements and is expected to be completed within the next three months.
Last month GTL Infrastructure acquired Aircel’s tower assets for US$1.8bn.
