American Tower Broadens India Presence

NEW DELHI—Telecommunications REIT American Tower Corp. is acquiring a controlling interest in Viom Networks Ltd., which owns and operates approximately 42,200 wireless communications towers and 200 indoor distributed antenna systems across India, the world's second largest telecom market. The total cash consideration for the 51% ownership stake will be 76 billion rupees, or approximately US$1.16 billion.

Boston-based ATC, which already controls approximately 14,000 towers across India, will merge its existing Indian portfolio with Viom after the deal closes. Tata Teleservices Ltd., which currently controls a 54% stake in Viom, will retain a part of its holding. Macquarie SBI Infrastructure Investments Pte Ltd., SBI Macquarie Infrastructure Trust and IDFC Private Equity Fund III wil retain certain interests. SREI Infrastructure Finance Ltd., a minority stakeholder in Viom, will exit the ownership structure altogether.

“With a population of nearly 1.3 billion people, rapidly growing smartphone penetration and limited fixed line infrastructure, India's vibrant wireless industry is poised for a sustained period of network investment,” said James D. Taiclet, Jr., ATC's chairman, president and CEO. “ATC India's greatly expanded portfolio of towers will enable us to play a key role in providing the communications real estate essential to the deployment of advanced wireless technologies throughout the country and to support the Indian government's Digital India Initiative.”

During the quarter ended June 30, Viom generated approximately 50 billion rupees in rental and management revenue and approximately 21 billion rupees in gross margin. ATC expects to close on its majority stake in mid-2016.

Evercore and Kotak Investment Banking served as ATC's financial advisors and Clifford Chance, AZB & Partners and Luthra & Luthra as its legal advisors. Credit Suisse served as exclusive financial advisor to Viom and its shareholders, while Cyril Amarchand Mangaldas served as legal advisor to Viom and its primary shareholders.