Summary
On October 21, 2015, American Tower Corporation (AMT) announced a significant strategic transaction through its wholly-owned subsidiary, ATC Asia Pacific Pte. Ltd. The company entered into a Share Purchase Agreement to acquire approximately 51% of Viom Networks Limited, a major Indian telecommunications infrastructure company, for approximately 76 billion Indian Rupees (subject to adjustments). This acquisition, expected to close in mid-2016, will add approximately 42,200 wireless communication towers and 200 indoor distributed antenna systems to AMT's portfolio, significantly expanding its presence in the key Indian market. The transaction details also include a Shareholders Agreement with Viom and remaining shareholders, outlining governance rights, pre-emptive rights, transfer restrictions, and put/call options. These provisions will govern the relationship between AMT and the minority shareholders of Viom post-acquisition. The company also announced that presentation slides regarding this transaction would be made available on its website.
Key Highlights
- 1American Tower (AMT) to acquire a 51% stake in India's Viom Networks for approximately INR 76 billion.
- 2The acquisition includes approximately 42,200 wireless towers and 200 indoor DAS systems in India.
- 3The transaction is expected to close in mid-2016, subject to regulatory approvals and customary closing conditions.
- 4A Shareholders Agreement has been entered into, defining rights and obligations with remaining Viom shareholders.
- 5The deal significantly expands AMT's footprint in the growing Indian telecommunications market.
- 6AMT's subsidiary, ATC Asia Pacific Pte. Ltd., is the purchasing entity, with American Tower International, Inc. guaranteeing payment.