US-based American Tower Corp (ATC) is inching closer to buying independent Indian towerco TowerVision for Rs32bn (US$568m), according to two people familiar with the situation cited by the Economic Times.
The deal, which is reportedly expected to close…
US-based American Tower Corp (ATC) is inching closer to buying independent Indian towerco TowerVision for Rs32bn (US$568m), according to two people familiar with the situation cited by the Economic Times.
The deal, which is reportedly expected to close within the next two months, will be the first such transaction in the Indian market in nearly three years.
In August 2010, ATC had acquired Essar Telecom Infrastructure (ETIPL) and its 4,600 towers from Essar Group for Rs21bn (US$450m).
But since then, regulatory uncertainties and the 2G scam have scared off investors and delayed several potential deals.
Overall, ATC is looking to acquire TowerVision’s 8000 towers, valuing each site at US$71,000, reported the paper. This is substantially less than the US$700m US PE firm Quadrangle and Israeli investor Fore Group, owners of TowerVision, were looking to secure for the company in September 2011.
At the time, ATC had already been rumoured to be among the potential buyers, along with private equity firm Carlyle.
The US towerco has been very acquisitive of late, with the purchase of Mexican wireline operator Axtel’s towers for US$250m in February this year. A few months before that it bought 2,000 German towers from Dutch telco KPN’s local subsidiary E-Plus for US$500m.
American Tower has a global portfolio of 54,000 owned or managed sites, including 10,000 in India.
If successful, this deal as well as the recent all-round partnership signed between the Ambani brothers earlier this year could be the beginning of a new consolidation and expansion wave in the sluggish and overcrowded Indian towerco industry.
ATC and TowerVision were not immediately available for comment.
