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Essar Group has entered in a definitive share purchase agreement with American Tower Corporation’s (ATC) to hive off its telecom infrastructure arm.

In an announcement made by Essar, the company informs that ATC will acquire substantially the entire issued share capital of Essar Telecom Infrastructure Private Limited (ETIPL) in an all cash deal. This acquisition would be done by the Singapore-based subsidiary of ATC – Transcend Infrastructure Limited (TIL).

In regard to the deal, the enterprise value of ETIPL has been adjudged to be approximately Rs 2000 crores.

One of India’s largest independent tower companies, ETIPL owns around 4,450 wireless communications tower sites including a number of towers under construction. They operate across 12 of the 22 telecom circles in India and have an industry leading tenancy ratio of 1.8x.

TIL is an indirect wholly owned Indian subsidiary of American Tower Corporation, a leading independent owner and operator of wireless and broadcast communication sites.

The Transaction is subject to certain pre-completion requirements and is expected to be completed in approximately 3 months.

Indus Towers is the leading telecom tower firm in the Indian sphere which comprises of Bharti Airtel, Vodafone Essar and Idea Cellular towers collectively and has over 100,000 towers. Other telecom towers companies include Reliance Infratel, Tata-Quippo and GTL Infrastructure.