KKR & Co., Stonepeak Partners, and Macquarie Capital are exploring the possibility of acquiring a stake in Ascend Telecom Infrastructure Pvt. Ltd, India’s third-largest telecom tower company. This interest comes after Brookfield secured American Tower Corp.’s India assets.
The investment funds are reaching out to merchant bankers to initiate discussions with Ascend, which is fully owned by US-based Global Infrastructure Partners. “They want to assess the interest of Ascend’s promoters,” said a source familiar with the talks, adding that initial negotiations could happen soon, with a final deal anticipated within four to six months.
India has over 809,000 telecom towers, with estimates indicating a 7% annual growth. Given the funds’ eagerness for investment in India’s tower market, a deal could progress quickly.
Previously, KKR, Stonepeak, and Macquarie were among the initial bidders for ATC’s assets, but Brookfield ultimately won that race. Inquiries sent to KKR and Ascend went unanswered, while Macquarie and Stonepeak declined to comment. Global Infrastructure Partners stated that they are not looking to sell Ascend.
The telecom infrastructure sector has attracted considerable interest from global infrastructure, sovereign, and venture capital funds in recent years. Telecom companies like Reliance Jio and Bharti Airtel are expanding their 5G capabilities and broadband services into less urbanized areas, increasing the demand for new towers and small cell sites. This growth is expected to continue in the coming years, drawing further investor interest.
Ascend Telecom serves major clients, including Bharti Airtel, Vodafone Idea, Reliance Jio, and Bharat Sanchar Nigam Ltd (BSNL). The company operates around 18,600 towers and has 30,800 tenancies. They also offer small cell sites and high-speed fiber connections.
In the latest financial quarter, Ascend reported a profit of ₹192.90 crore, recovering from a loss of ₹26.70 crore the previous year. Their revenue grew by 12.17% to ₹292.10 crore compared to ₹260.40 crore in the same period last year.
Last year, Ascend expanded by acquiring Tower Vision India Pvt. Ltd, adding approximately 9,000 towers for $365 million, which made them the fourth-largest player at that time.
Brookfield’s recent acquisition of ATC India’s 76,000 towers marked its third tower purchase in India, expanding its footprint in the sector. Brookfield’s telecom assets, including Summit Digitel, Crest Digitel, and now ATC India, will operate under a new brand called Altius, creating the largest tower service provider in India with a total of 257,000 towers. Indus Towers, mostly owned by Bharti Airtel, was the previous market leader with 226,000 towers, following its merger with Bharti Infratel.
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