Global investment firm La Caisse has invested ₹ 121 billion (US$ 1.28 billion) to acquire a 24 percent stake in India’s largest independent telecommunications tower platform, Altius Telecom Infrastructure Trust (Altius), as demand for mobile connectivity and 5G infrastructure continues to grow in the country.
According to a press release, the completed transaction sees Brookfield retain its status as the largest investor in Altius. La Caisse joins existing shareholders who are affiliates of GIC and the British Columbia Investment Management Corporation (BCI).
“As India’s economy grows and more people and businesses rely on higher use of mobile data, the infrastructure behind those connections needs to keep pace,” said Emmanuel Jaclot, La Caisse Executive Vice-President and Head of Infrastructure and Sustainability. “This is a sector we know well through our investments in telecom towers and digital infrastructure around the world. With Altius, we are investing in an attractive market through an established platform, alongside Brookfield and other institutional partners with whom we have longstanding relationships.”
“Altius has built a scaled, nationwide platform that is in a leading position to meet India’s demand for mobile connectivity and 5G infrastructure. La Caisse’s investment brings another long-term institutional partner to the platform and reflects confidence in the strength of the business. Alongside our partners, we will continue to support Altius’ next phase of growth by deploying our owner-operator capabilities and disciplined, long-term approach to infrastructure investing,” said Sam Pollock, Brookfield’s Infrastructure group Chief Executive Officer.
In early August, Altius filed draft offer documents with the Securities and Exchange Board of India, starting the process of evolving from a private infrastructure investment trust (InvIT) to a publicly listed InvIT. As part of the offering, Altius will create a fresh issue of units worth ₹ 5 billion (US$ 52.94 million). Existing investors including GIC and BCI will also divest a portion of their units.
Altius owns and operates over 258,000 telecommunications towers and sites across India. In addition, the platform provides the infrastructure mobile network operators need to deliver 4G and 5G services.
Adoption of 5G across Indian urban and semi-urban regions is accelerating, according to research from MarketsandMarkets. As smartphone penetration grows alongside affordable data plans supported by government incentives for digital connectivity, the 5G market will explode from a value of US$ 2.3 billion in 2023 to US$ 24.2 billion by 2028.