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American Tower Buys Vodafone And Idea’s Telecom Towers For $1.2 Bn

American_Tower

The US based telecom infrastructure company American Tower is acquiring the telecom towers of Vodafone India and Idea Cellular for $1.2 Billion or Rs 7850 crore. The company is buying a total of 20,000 telecom towers belong to the two firms that are set a for a merger.

“The aggregate cash consideration for the transactions is expected to be Rs 78.5 billion, or approximately $1.2 billion at current exchange rates, subject to customary closing adjustments,” said the US based tower company that had earlier acquired Viom Networks, another Indian tower company.

As part of the transactions, Vodafone and Idea Cellular would get the service level and process efficiency benefits from American Tower, means these two telecom operators would continue to get usual service from these tower sites.

Similarly, American Tower will have certain preferential rights for future new business commencements on its existing portfolio and on the sites being acquired in certain Indian markets.

Jim Taiclet, American Tower’s Chief Executive Officer stated, “We expect the addition of these two high quality portfolios to be highly complementary to our existing assets and to contribute to long-term leasing growth as India’s leading mobile operators accelerate their 4G network deployments.”

The transactions are expected to generate approximately Rs 21 billion (approximately $320 million) in property revenue and approximately Rs 8 billion (approximately $120 million) in gross margin during their first full year in American Tower’s portfolio, at current exchange rates. Further, SG&A associated with the assets is expected to be less than Rs 1 billion (approximately $10 million) for the first year. The transactions are expected to be immediately accretive to AFFO per share, are subject to customary closing conditions and regulatory approval and are expected to close in the first half of 2018.

Amit Sharma, American Tower’s EVP and President, Asia and Chairman of the Board, ATC TIPL, added, “We are extremely pleased to partner with Vodafone and Idea to help expand mobile broadband services across India while furthering our participation in the Digital India initiative.”

Tags : american tower idea dealatcatc vodafone tower dealViom Networks
Gyana Ranjan Swain

The author Gyana Ranjan Swain

Tracking the telecom industry for last 14 years, Gyana has worked in cross platform media ranging from broadcast, print, wire agency and online. With an entrepreneurial bent of mind, he loves to write about how technology helps transform lives. He has also founded M2MCafe.com, a news portal on Internet of Things.

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