Indus Towers, the India-based tower company, announced its acquisition of 16,100 telecommunications towers from communications service providers, Bharti Airtel and Bharti Hexacom, Economic Times reported. The $364 million cash deal is expected to be finalized by March 31 of this year. Indus Towers clarified that the total acquisition cost would not exceed $364 million, subject to closing adjustments agreed upon by the parties involved.
As part of the transaction, Bharti Airtel will divest 12,700 towers, while Bharti Hexacom will sell 3,400 towers. Indus Towers stated that this acquisition aligns with its core business strategy and is expected to enhance its market share and support its growth objectives.
This transaction qualifies as a related-party transaction, given that Bharti Airtel is the promoter and holding company of Indus Towers, while Bharti Hexacom is a fellow subsidiary. Indus Towers confirmed in a regulatory filing that the transaction is conducted at arm’s length, based on an independent valuation report.
Indus Towers reported a pan-India presence with 234,643 towers and 386,819 colocations, yielding a tenancy ratio of 1.65 as of December 31, 2024. Post-acquisition, Indus Towers’ portfolio will expand to 250,743 towers across India.
This expansion positions Indus Towers as the second-largest independent tower company in India, trailing Brookfield Asset Management (NYSE: BAM)-owned Altrius, which has approximately 257,000 towers following its acquisition last year of American Tower’s (NYSE: AMT) operations in India, Inside Towers reported. Note that Altrius and Indus Towers are ranked as the number one and number two independent tower companies globally, according to Inside Towers Intelligence.
Indus Towers emphasized that the acquisition aligns with its strategic priority of increasing market share. The company noted that this acquisition will significantly contribute to its growth plans due to the advantageous location and colocation status of the newly acquired towers, offering opportunities for shared usage that could drive revenue growth.
By John Celentano, Inside Towers Business Editor
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