American Tower Corporation (NYSE: AMT), Tata Teleservices
Limited, and SREI Infrastructure Finance Limited today announced
that they, along with several other minority holders, have entered
into a definitive agreement pursuant to which American Tower will
acquire a 51% controlling interest in Viom Networks Limited
(“Viom”). Viom currently owns and operates approximately 42,200
wireless communications towers and 200 indoor distributed antenna
systems across India. The total cash consideration will be INR 76
billion.
At closing, Tata Teleservices Limited will retain a part of its
holding, with Macquarie SBI Infrastructure Investments Pte Limited,
SBI Macquarie Infrastructure Trust and IDFC Private Equity Fund III
retaining certain interests. Under the agreement, American Tower
may acquire or be required to acquire all or a portion of the
remaining 49% ownership stake in Viom. Additionally, the parties
have agreed that, post-closing, American Tower’s existing Indian
portfolio of approximately 14,000 towers will be merged with Viom,
resulting in certain ownership adjustments.
“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., American
Tower’s Chairman, President and Chief Executive Officer. “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.”
Commenting on the transaction, Ishaat Hussain, Director, Tata
Teleservices Limited, said “This partnership with ATC presents an
opportunity for Tata Teleservices to leverage an enhanced
infrastructure portfolio to better address the rapidly expanding
market for next generation data services in India.”
Sunil Kanoria, Chairman and Managing Director of Viom and Vice
Chairman of SREI Infrastructure Finance Limited, noted that “We
have built one of the best assets in the telecom tower space with
robust cash flow stream, the highest tenancy ratio in the industry
and a well-diversified tenant mix, besides creating a world class
management team. We are pleased to have found a new management team
for Viom, and believe that ATC is well positioned to continue to
optimize these assets given its proven track record of success.
From SREI’s perspective, the divestment of Viom will have a
multi-fold impact for SREI improving profitability and will be
accretive for both shareholders and SREI.”
American Tower anticipates consolidating the full financial
results for Viom after the closing of the transaction. During the
quarter ended June 30, 2015, Viom generated the following
annualized results: approximately INR 50 billion in rental and
management revenue and approximately INR 21 billion in gross
margin. In addition, as of September 30, 2015, Viom had
approximately INR 58 billion of INR-denominated debt outstanding.
American Tower expects the transaction to be immediately accretive
to AFFO per share.
Amit Sharma, American Tower’s Executive Vice President and
President, Asia, added, “Through our joint ownership with the Tata
Group of over 56,000 towers, American Tower will be strategically
positioned to benefit from the leasing revenue growth opportunities
that will come from the accelerating deployment of 3G and 4G
technologies by all of the wireless carriers in the market.”
American Tower intends to finance the transaction in a manner
consistent with maintaining its investment grade credit rating. The
transaction is subject to customary closing conditions and
regulatory approval, and is expected to close in mid-2016.
American Tower utilized Evercore and Kotak Investment Banking as
financial advisors and Clifford Chance, AZB & Partners and
Luthra & Luthra as legal advisors. Credit Suisse served as
exclusive financial advisor to Viom and its shareholders. Cyril
Amarchand Mangaldas served as legal advisor to Viom and its primary
shareholders.
About American Tower
American Tower, one of the largest global REITs, is a leading
independent owner, operator and developer of multitenant
communications real estate with a portfolio of approximately 97,000
communications sites. For more information about American Tower and
this transaction, please visit the Company & Industry Resources
portion of the “Investor Relations” section of our website,
www.americantower.com.
About Tata Teleservices Limited (“TTL”)
TTL is one of India’s leading mobile telecommunications service
providers delivering mobile connectivity, content and services to
consumers across the country. The company has been at the forefront
of redefining the telecom experience in India, launching
technologically advanced innovative products and services, playing
an enabling role in simplifying consumer lives and expanding
digital inclusion. TTL together with its associates has a
pan-India presence across India’s 19 telecom circles. TTL offers
integrated telecom solutions to its customers under the unified
brand name Tata Docomo and operates its wireless networks on GSM,
CDMA and 3G technology platforms. For details, visit
www.tatateleservices.com.
About SREI Infrastructure Finance Limited (“SREI”)
SREI is one of India's largest private sector integrated
infrastructure institutions, constantly and consistently delivering
innovative solutions in the infrastructure sector. The company has
been playing a significant role in nation-building for
two-and-a-half decades, both in urban and rural India. SREI's
businesses include Infrastructure Project Finance, Advisory and
Development, Infrastructure Equipment Finance, Alternative
Investment Funds, Capital Market and Insurance Broking. SREI,
headquartered in Kolkata, has a network of 86 branches.
Cautionary Language Regarding Forward-Looking
Statements
This press release contains statements about future events and
expectations, or “forward-looking statements,” all of which are
inherently uncertain. We have based those forward looking
statements on management’s current expectations and assumptions and
not on historical facts. Examples of these statements include, but
are not limited to, statements regarding the proposed closing
of the transaction described above, expected financial projections
for the portfolio and the impact on our consolidated results, the
expected cash consideration and the expected sources of funds to
pay for the transaction described above. These forward-looking
statements involve a number of risks and uncertainties. For
important factors that may cause actual results to differ
materially from those indicated in our forward-looking statements,
we refer you to the information contained in Item 1A of our
Form 10-K for the year ended December 31, 2014 under the caption
“Risk Factors” and in other filings we make with the Securities and
Exchange Commission. We undertake no obligation to update the
information contained in this press release to reflect subsequently
occurring events or circumstances.
AFFO is a non-GAAP financial measure. For more information, see
our Form 10-Q for the quarter ended June 30, 2015 under the
captions “Management’s Discussion and Analysis of Financial
Condition and Results of Operations – Non-GAAP Financial Measures”
and “– Results of Operations.” Additionally, AFFO per share is a
non-GAAP measure, and is defined as AFFO divided by the diluted
weighted average common shares outstanding.
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version on businesswire.com: http://www.businesswire.com/news/home/20151021005748/en/
American Tower Investor Relations Contact:Leah Stearns,
617-375-7500Senior Vice President, Treasurer and Investor
RelationsorATC India Public Relations Contact:Image Public
RelationsSunaina Jairath, 98116 45243orTTL Investor Relations
Contact:Anupama Chopraanupama.chopra@tatatel.co.inorSREI
Contact:Sugato Banerji, 33660 23211Head – Brand &
Communications
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