Brookfield Asset Management is evaluating a stake sale in Indian digital connectivity infrastructure company Crest Digitel, two sources familiar and a sector banker said.

Discussions around the deal for Gurugram-based Crest Digitel, part of the Altius Group, are at an early stage. The timeline and size of the stake to be offered are yet to be decided, the sources said.

An INR 135bn (USD 1.6bn) loan that Brookfield raised last September contains ownership restrictions around Altius, prompting the manager to consider a potential stake sale in Crest Digitel, a third source said without providing details.

Data Infrastructure Trust, Brookfield’s Indian infrastructure investment trust, raised the syndicated financing through rupee bonds and term loans to fund the acquisition of ATC Telecom and refinance existing debt at the tower company.

Crest Digitel, ATC India and Summit Digitel were combined into a single branded entity, Altius Group, following the ATC India acquisition, announced last September

Data Infrastructure Trust is also backed by British Columbia Investment Management Corporation and GIC.

The ATC transaction involved the buyout of approximately 76,000 communications sites in India for an enterprise value of USD 2.2bn.

Data Infrastructure Trust houses Summit Digitel and Crest Digitel and is managed by investment manager Data Link, an affiliate of Brookfield.

The ATC deal was Brookfield’s third in the Indian telecommunications sector. In 2022, Brookfield acquired a portfolio of 6,300 indoor business solutions sites and small cell sites. It also has a portfolio of approximately 175,000 towers acquired in 2020 from Reliance Industrial Investments and Holdings.

Crest Digitel has received a long-term credit rating of AA+ (Stable) from Moody’s local arm ICRA.

Crest Digitel offers end-to-end digital connectivity infrastructure focusing on in-building solutions and small cells for mobile services providers. According to the company’s LinkedIn page, it has a market share of more than 50% for in-building solutions, covering 65% of metro stations, 59% of airports, and 10 million+ daily touchpoints with a presence across all of India’s 22 telecommunications circles.

Brookfield Asset Management, Crest Digital, and Altius did not respond to requests for comment.