Transcend Infrastructure Limited (“TIL”) announced today that they have entered into a definitive share purchase agreement with three Indian companies of the Essar Group to acquire substantially the entire issued share capital of Essar Telecom Infrastructure Private Limited (“ETIPL”) in an all cash deal.
The Transaction values ETIPL at an enterprise value of approximately Rs 2000 crores, and is subject to certain post closing adjustments. The Transaction is subject to certain pre-completion requirements and is expected to be completed in approximately 3 months.
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. We would like to thank the management and our colleagues at ETIPL for their contribution over the years in building this enterprise. Going forward the company under the aegis of ATC can look forward to significant growth and consolidating its position in this space.”
Commenting on the Transaction 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.”
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.
Barclays Capital is acting as financial adviser to Essar in connection with the Transaction.
About Essar Group: Essar is a diversified business corporation with a balanced portfolio of assets in the manufacturing and services sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics, Projects, Construction, and Mining & Minerals. With operations in more than 20 countries across five continents, Essar employs 60,000 people, with revenues of over US $15 billion in FY08-09. For more information, visit: www.essar.com
About Transcend
Transcend is an indirect wholly owned Indian subsidiary of American Tower Corporation and is engaged in the business of owning and operating wireless towers and other related passive infrastructure in India.
About American Tower Corporation
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. For more information, visit: www.americantower.com
