American Towers is ready to promote its loss-making Indian operations for $2.2 billion

Business Standard

American Towers, the US-based telecom tower big, is near promoting its loss-making operations in India for an enterprise valuation of as much as $2.2 billion by the top of subsequent month.

iSquared Capital, a US-based infrastructure non-public fairness agency, is main the race to purchase the telecom tower firm that has seen a steady loss in valuation prior to now few years, a banking supply mentioned. I Squared Capital declined to remark.

Within the September quarter, ATC recorded a goodwill impairment cost of $322 million related to its India enterprise. Submit impairment, the carrying worth of the Indian operations is about $2.2 billion based mostly on an evaluation of inside impairment evaluate, discounted money flows and value of capital, firm officers mentioned within the third-quarter outcomes convention.

“We’re making important progress within the strategic evaluate of our India enterprise. As we’re within the closing levels of this course of, we stay dedicated to speaking the findings to our shareholders earlier than the top of the yr, in line with our earlier communications,” Rod Smith, Govt Vice President, CFO and Treasurer of ATC . He mentioned on a convention name with analysts just lately.

ATC India is the third largest impartial telecom tower firm in India, each by way of variety of towers and tenants, and has a major presence in all telecom circles. The corporate acquired a number of towers to extend its presence in India together with its market share. ATC India’s portfolio has expanded to over 77,000 websites and captured a telecom tower market share of round 17 per cent.

In FY23, the corporate exercised the decision possibility on its Rs 4,200 crore non-convertible debentures (NCD) and redeemed your complete quantity with curiosity.

In India, the corporate is going through delays in funds from Vodafone India which has resulted in elevated working capital necessities for the corporate. The corporate subscribed to Optionally Convertible Debentures (OCD) issued by VIL price Rs 1,600 crore, a part of which was used to clear earlier excellent quantities from the consumer. The corporate’s rental dependence on VIL was round 44 per cent as on December 31, 2022 – triggering a evaluate of the enterprise in India by ATC.

In FY18, the corporate raised debt to fund the acquisition of Vodafone and Thought tower belongings. This elevated the corporate’s affect. The corporate was initially included in March 2004 as Tata Tele Data, and is a 100 per cent subsidiary of TTSL. Over time, the corporate has seen modifications in shareholding proportion and thus modified its title. As of date, its curiosity is wholly owned by ATC Asia Pacific Pte, a US subsidiary of ATC. For the 9 months ended December 2022, the corporate reported an working revenue of Rs 6,211 crore and a lack of Rs 2,220 crore, in line with a press release by Care Rankings.

(Tags for translation)Communications Tower

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