American Tower Corporation (NYSE: AMT) has announced a significant move in its operations, with the signing of a definitive agreement to sell its operations in India to Data Infrastructure Trust (DIT), an infrastructure investment trust sponsored by Brookfield Asset Management (NYSE: BAM, TSX: BAM). The total cash proceeds to American Tower at closing, subject to certain pre-closing terms, would potentially represent up to approximately INR 210 billion, or $2.5 billion at today's exchange rates.
The transaction, which is subject to customary closing conditions, including government and regulatory approvals, is expected to close in the second half of 2024. American Tower will retain the full economic benefit associated with the optionally converted debentures (OCDs) issued by Vodafone Idea and will be entitled to receive future payments related to existing ATC India receivables.
Adam Smith, Senior Vice President of Investor Relations at American Tower, commented on the transaction, stating, "The sale of our operations in India represents the completion of the previously announced strategic review of our business in the region. The proceeds from this transaction are expected to be used to repay American Tower's existing indebtedness."
This move aligns with the company's strategy to optimize its portfolio and focus on opportunities that maximize long-term shareholder value. The company aims to continue its growth trajectory and leverage its position as a leading independent owner, operator, and developer of multitenant communications real estate with a highly interconnected footprint of U.S. data center facilities.
American Tower's stock experienced a -0.5% movement following the announcement and is currently trading at a price of $214.3 per share.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $7,440 | $7,580 | $8,042 | $9,357 | $10,711 | $11,062 |
| Revenue Growth | n/a | 1.88% | 6.08% | 16.36% | 14.47% | 3.28% |
| Operating Margins | 26% | 35% | 36% | 33% | 22% | 23% |
| Net Margins | 17% | 25% | 21% | 27% | 16% | 6% |
| Net Income (MM) | $1,236 | $1,888 | $1,691 | $2,568 | $1,697 | $637 |
| Net Interest Expense (MM) | $8 | $814 | $794 | $871 | $1,136 | $1,351 |
| Earnings Per Share | $2.77 | $4.24 | $3.79 | $5.66 | $3.82 | $1.51 |
| Diluted Shares (MM) | 443 | 446 | 446 | 453 | 463 | 467 |
| Free Cash Flow (MM) | $2,835 | $2,761 | $2,850 | $3,443 | $1,823 | $2,834 |
| Capital Expenditures (MM) | $913 | $991 | $1,032 | $1,377 | $1,874 | $1,932 |
| Current Ratio | 0.51 | 0.47 | 0.79 | 0.41 | 0.44 | 0.56 |
| Total Debt (MM) | $18,405 | $21,127 | $28,498 | $38,686 | $34,156 | $35,442 |
