Transcend Infrastructure Limited (TIL) has announced that it entered into a definitive share purchase agreement with three Indian companies of the Essar Group to acquire the entire issued share capital of Essar Telecom Infrastructure Private Limited (ETIPL) in an all cash deal valuing ETIPL at about Rs 2000 crore. The transaction is subject to certain post closing adjustments and pre-completion requirements and is expected to be completed in approximately 3 months.
ETIPL is one of India’s largest independent tower companies with a portfolio of approximately 4,450 wireless communications tower sites including a number of towers under construction. They operate across 12 of the 22 telecom circles in India and have an industry leading tenancy ratio of 1.8x. TIL is an indirect wholly owned Indian subsidiary of American Tower Corporation, a leading independent owner and operator of wireless and broadcast communication sites.
Commenting on the transaction Vikash Saraf, Director Strategy and M&A, Essar Group said, “ETIPL is one of the pioneers in the wireless tower outsourcing business and has over the past few years built a substantial portfolio of attractive and well located towers, a marquee client base and one of the highest tenancy ratios in the business.”
Amit Sharma, Executive Vice President and President Asia of ATC said, ``the addition of ETIPL to American Tower’s existing Indian operations will significantly strengthen our ability to serve our telecom customers; this will help them in enhancing their network coverage and in launching new technologies like 3G and WIMAX.”
Barclays Capital is acting as financial adviser to Essar in connection with the Transaction. Headquartered in Boston, Massachusetts, American Tower Corporation is a leading independent owner and operator of wireless and broadcast communication sites. American Tower currently owns and operates over 27,000 sites in the United States and in Mexico, Brazil and India.