Summary
American Tower Corporation (AMT) announced on February 24, 2010, a significant strategic acquisition of Essar Telecom Infrastructure Private Limited (ETIPL) through its Indian subsidiary, Transcend Infrastructure Limited. This transaction involves acquiring substantially all shares of ETIPL, which owns and operates approximately 4,450 wireless communication tower sites in India, including those under construction. The total consideration is approximately $430 million, comprised of cash and the assumption of net debt and liabilities. This move signals AMT's aggressive expansion into the rapidly growing Indian telecommunications market. The company plans to finance the cash portion of the acquisition using its existing $1.25 billion senior unsecured revolving credit facility. The deal is expected to close by the end of the second quarter of 2010, pending regulatory approvals and other customary closing conditions. Additionally, AMT furnished a press release announcing its financial results for the fourth quarter and full year ended December 31, 2009.
Key Highlights
- 1Acquisition of Essar Telecom Infrastructure Private Limited (ETIPL) in India.
- 2Acquisition includes approximately 4,450 wireless communication tower sites.
- 3Total consideration for the acquisition is estimated at $430 million (cash and assumed debt).
- 4Financing for the cash portion will come from AMT's $1.25 billion revolving credit facility.
- 5Transaction is expected to close by the end of Q2 2010.
- 6Acquisition is subject to regulatory approvals and customary closing conditions.
- 7Company also reported Q4 and full-year 2009 financial results.