Essar sells tower biz to American Tower for Rs 2,000 cr

Transcend Infrastructure, an affiliate of American Tower, today said it has 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 (ETIPL) in an all cash deal.

The transaction values ETIPL at an enterprise value of approximately Rs 2,000 crore, and is subject to certain post closing adjustments, TIL said in a statement.
The transaction is subject to certain pre-completion requirements and is expected to be completed in three months.

Earlier in the day, Essar Securities, the securities brokerage unit of Essar Group, said in a BSE filing that it has agreed to sell its stake in the group’s mobile towers unit to American Tower Co for Rs 49 crore. Transcend Infrastructure acquired the stake of Essar Securities.
Essar Group Director (Strategy and M&A) Vikash Saraf said, "ETIPL is a one of the pioneers in the wireless tower outsourcing business and has built a substantial portfolio of attractive and well located towers, a marquee client base and one of the highest tenancy ratios in the business. Going forward, the company under the aegis of ATC can look forward to significant growth and consolidating its position".