ATC set to acquire Essar Telecom Infrastructure

24 Feb 2010

US-based American Tower Corp (ATC) will purchase Essar Telecom Infrastructure (ETI) in an all-cash deal valued at USD450 million, according to the Economic Times. It is understood that alongside paying out USD350 million in equity ATC will also assume responsibility for ETI’s existing debts, which total around USD150 million. The formal announcement of the agreement is expected later today, and will mark ATC’s third acquisition in India over the past twelve months; last year the American company purchased Xcel Telecom and Transcend Infrastructure. ETI is one of India’s largest tower infrastructure firms, with around 4,500 towers in operation and a tenancy of 1.8 operators per tower. The deal will be subject to approval from India’s Foreign Investment Promotion Board (FIPB).