Item 8.01 Other Events.
Idea Cellular Limited.
On November 13, 2017, the Company’s majority owned subsidiary, ATC Telecom Infrastructure Private Limited (the “Purchaser”), entered into an agreement (the “Share Purchase Agreement”) with Idea Cellular Limited (“Idea”) and Idea's subsidiary, Idea Cellular Infrastructure Services Limited (“ICISL”), to acquire 100% of the outstanding shares of ICISL, a telecommunications company that owns and operates approximately 9,900 communications sites in India, for cash consideration of approximately 40 billion Indian Rupees (“INR”), subject to certain adjustments (the “Idea Transaction”). American Tower International, Inc. (“ATII”), a wholly owned subsidiary of the Company, will agree to certain support arrangements with respect to payment of the purchase price by the Purchaser.
The Share Purchase Agreement contains customary representations, warranties and covenants of the parties. Consummation of the Idea Transaction is subject to certain conditions, including regulatory approval. The Idea Transaction is expected to close in the first half of 2018. The Share Purchase Agreement contains customary termination provisions and, in addition, may be terminated if closing has not occurred by 12 months from the date of signing, unless such failure to close is the fault of the party seeking termination.
Vodafone India Limited.
On November 13, 2017, the Purchaser entered into an agreement (the “Business Transfer Agreement”) with Vodafone India Limited and Vodafone Mobile Services Limited (together, “Vodafone”) to acquire their
telecommunications site businesses, which consist of an aggregate of approximately 10,400 communications sites, for aggregate cash consideration of approximately 38.5 billion INR, subject to certain adjustments (the “Vodafone Transaction”). ATII will agree to certain support arrangements with respect to payment of the purchase price by the Purchaser.
The Business Transfer Agreement contains customary representations, warranties and covenants of the parties. Consummation of the Vodafone Transaction is subject to certain conditions, including regulatory approval. The Vodafone Transaction is expected to close in the first half of 2018. The Business Transfer Agreement contains customary termination provisions and, in addition, may be terminated if the closings have not occurred within 12 months of the date of signing, unless such failure to close is the fault of the party seeking termination.
As part of the Idea Transaction and the Vodafone Transaction, the parties have established a preferred partner structure under which Idea and Vodafone will receive service level and process efficiency benefits and the Purchaser will secure certain preferential rights for future new business commencements on its existing portfolio and on the sites being acquired in certain Indian markets.