Canada’s Brookfield Asset Management has revealed its plans to acquire the loss-making Indian operations of American Tower for $2.5 billion. This deal solidifies Brookfield’s position as the largest telecom tower operator in India, surpassing Indus Towers. The acquisition is seen as a significant move in the telecom infrastructure sector, as it marks American Tower’s exit from the Indian market after 16 years. American Tower decided to sell its Indian operations due to challenges in recovering dues from its top client, Vodafone Idea. This acquisition is Brookfield’s third in India in the past four years.
Brookfield currently operates approximately 157,000 telecom towers in India through its associate, Data Infrastructure Trust (DIT). In contrast, American Tower operates around 77,000 towers. Indus Towers, on the other hand, has approximately 193,000 towers. Bharti Airtel, one of India’s leading telecom companies, holds a 48% stake in Indus Towers, while Vodafone Idea holds a 3% stake. It is worth noting that Vodafone Idea is facing operational and financial difficulties, whereas Airtel and Reliance Jio are experiencing growth in the telecom industry.
Brookfield expressed that the acquired sites are expected to diversify DIT’s revenues and enhance its relationships with all mobile network operators in India. The company entered the Indian market in 2019 by purchasing 130,000 towers from Reliance. In 2022, it acquired an additional portfolio of 5,000 towers. In the fiscal year that ended in March 2023, Data Infrastructure reported revenues of INR 111 billion ($1.33 billion), whereas Indus Towers reported revenues of INR 283.8 billion.
The completion of this transaction is expected in the second half of 2024. The news of the acquisition resulted in a 2.5% increase in Indus Towers’ shares, while Bharti Airtel’s shares remained relatively unchanged.
