American Tower Announces Entry into Agreements to Acquire Tower Businesses from Vodafone India and Idea Cellular
November 12 2017 - 10:37PM
Business Wire
American Tower Corporation (NYSE:AMT) today announced that ATC
Telecom Infrastructure Private Limited (“ATC TIPL”, formerly Viom),
its majority owned Indian subsidiary, has entered into definitive
agreements with Vodafone India Limited (“Vodafone”) and Idea
Cellular Limited (“Idea”) through which it will add an aggregate of
approximately 20,000 communications sites to its existing
Indian portfolio.
As part of the transactions, ATC TIPL, Vodafone and Idea have
established a preferred partner structure under which Vodafone and
Idea, given their expanded relationship with ATC TIPL, will receive
service level and process efficiency benefits and ATC TIPL will
secure certain preferential rights for future new business
commencements on its existing portfolio and on the sites being
acquired in certain Indian markets. The aggregate cash
consideration for the transactions is expected to be INR 78.5
billion, or approximately $1.2 billion at current exchange rates,
subject to customary closing adjustments.
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.”
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.”
The transactions are expected to generate approximately INR 21
billion (approximately $320 million) in property revenue and
approximately INR 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 INR 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.
About American Tower
American Tower, one of the largest global REITs, is a leading
independent owner, operator and developer of multitenant
communications real estate with a portfolio of approximately
149,000 communications sites. For more information about American
Tower, please visit www.americantower.com.
Cautionary Language Regarding Forward-Looking
Statements
This press release contains statements about future events and
expectations, or “forward-looking statements,” all of which are
inherently uncertain. We have based those forward looking
statements on management’s current expectations and assumptions and
not on historical facts. Examples of these statements include, but
are not limited to, statements regarding the proposed closing of
the transactions described above, expected financial projections
for the portfolios and the impact on our consolidated results, the
expected cash consideration for the transactions described above
and our expectations regarding the Indian wireless market. These
forward-looking statements involve a number of risks and
uncertainties. For important factors that may cause actual results
to differ materially from those indicated in our forward-looking
statements, we refer you to the information contained in Item 1A of
our Form 10-K for the year ended December 31, 2016 under the
caption “Risk Factors” and in other filings we make with the
Securities and Exchange Commission. We undertake no obligation to
update the information contained in this press release to reflect
subsequently occurring events or circumstances.
Consolidated AFFO is a non-GAAP financial measure. For more
information, see our Form 10-Q for the quarter ended June 30, 2017
under the captions “Management’s Discussion and Analysis of
Financial Condition and Results of Operations – Non-GAAP Financial
Measures” and “– Results of Operations.” Additionally, Consolidated
AFFO per share is a non-GAAP measure. Consolidated AFFO per share
is defined as Consolidated AFFO divided by the diluted weighted
average common shares outstanding.
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version on businesswire.com: http://www.businesswire.com/news/home/20171112005111/en/
ATC:Igor Khislavsky, 617-375-7500Director, Investor
Relations
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