American Tower Corp. agreed to buy mobile-phone towers from Vodafone Group Plc’s Indian business and Idea Cellular Ltd. for 78.5 billion rupees ($1.2 billion).
The agreement is expected to be completed during the first half of 2018, ATC said in a statement on Monday. The deal, which is subject to customary closing conditions and regulatory approval, will probably generate about $320 million in property revenue and $120 million in gross profits during their first full year of being with American Tower’s portfolio, according to the statement.
The purchase would give ATC, which operates almost 150,000 communications sites globally, an additional 20,000 towers in a country with more than 1 billion mobile-phone subscribers. For Vodafone and Idea, the sale would help them pay off debt as they prepare to merge their Indian operations to create the country’s largest phone operator.
ATC had competed against Canadian alternative asset manager Brookfield Asset Management Inc. for the assets, people with knowledge of the matter said earlier this year.