Vi to launch Rs 180 billion FPO
Vodafone Idea Limited (Vi) is set to launch a follow-on public offering (FPO) to raise up to Rs 180 billion. The issue will open on April 18, 2024 and close on April 22, 2024. The offer is likely to be priced at a significant discount to the Rs 14.87 per share set for the preferential issue to one of the promoters. Jefferies, SBI Capital and JM Financials have been appointed as bankers for the public offering. Vi’s board has also approved a preferential share issue for raising Rs 20.75 billion from an Aditya Birla Group entity, setting the stage for a wider funding programme. As per the filing, the board has approved an issuance of up to 1,395,427,034 equity shares with a face value of Rs 10 each, at an issue price of Rs 14.87 per equity share (including a premium of Rs 4.87 per equity share), aggregating Rs 20.75 billion, to Oriana Investments Pte. Limited on a preferential basis. The board has also approved an increase in the authorised share capital of the company from the current Rs 750 billion to Rs 1 trillion. Vi will seek shareholders’ approval for the proposals at an extraordinary general meeting on May 8, 2024.
Bharti Hexacom’s IPO receives bids worth over $8 billion (India)
Bharti Airtel’s subsidiary Bharti Hexacom has received bids worth Rs 702.51 billion ($8.43 billion) in its initial public offering (IPO), outpacing its offer size of Rs 42.75 billion. According to data from the National Stock Exchange of India, investors bid for 1.23 billion shares at a price range of Rs 542-570 per share, which was 29.88 times more than the 41.2 million shares offered.
In addition, Bharti Hexacom had collected about Rs 19.24 billion from anchor investors a day before its initial share-sale opening for public subscription. According to the Bombay Stock Exchange, Bharti Hexacom allotted 33.7 million equity shares to 97 funds at Rs 570 apiece. Small Cap World Fund Inc., BlackRock, Fidelity Funds, Wellington Management, Abu Dhabi Investment Authority, Schroder, Aberdeen and Morgan Stanley Asia (Singapore) Pte were among the anchor investors.
BSNL to raise Rs 24.06 billion via two 10-year government-guaranteed bonds
Bharat Sanchar Nigam Limited (BSNL) is planning to issue two 10-year government-guaranteed bonds to raise funds up to Rs 24.06 billion ($290.3 million), including a greenshoe option of Rs 18.01 billion. BSNL has invited coupon and commitment bids from bankers and investors. The issue through which BSNL aims to raise up to Rs 8 billion will have a call-option at the end of eight years.
Singtel sells 0.8 per cent stake in Airtel for $711 million to GQG Partners
Singapore Telecommunications (Singtel) has sold a 0.8 per cent stake in Airtel for $711 million to GQG Partners. GQG Partners has bought 49 million shares of Airtel at Rs 1,193.70. The sale, carried out through Singtel’s subsidiary Pastel Limited, has resulted in Singtel’s effective stake in Airtel decreasing from 29.8 per cent to 29 per cent. Earlier in 2022, Singtel had sold a 3.3 per cent direct stake in Airtel. According to Singtel, it sold stake in Airtel to fund the growth of its data centre and information technology (IT) services, as well as to reduce its net debt.
ATC India requests Vi to convert OCDs into full-paid equity shares
American Tower Corporation (ATC) has requested Vodafone Idea Limited (Vi) to convert 14,400 optionally convertible debentures (OCDs), out of the 16,000 that the telco had issued to the tower company, into 1.44 billion fully-paid equity shares. In a stock exchange filing, Vi noted that ATC is one of its largest infrastructure service providers and that both entities have a long-term relationship. It stated that in the spirit of this partnership, ATC subscribed to OCDs amounting to Rs 16 billion, the proceeds of which were primarily utilised against payment dues to ATC. The conversion price of Rs 10, at the time of the OCD issuance, was at a premium to the then prevailing market price of Vi’s shares. The telco confirmed that ATC India will own 2.9 per cent of its revised shareholding after the conversion.
MTN to sell Guinea operation to Telecel (South Africa)
MTN has accepted an offer from Telecel to sell its units in Guinea-Bissau and Guinea-Conarky, as part of its portfolio optimisation strategy. As of December 31, 2023, MTN Guinea-Bissau’s accumulated foreign currency translation reserve (FCTR) gain was ZAR 277 million ($14 million) and MTN Guinea-Conakry’s accumulated FCTR loss was ZAR 1.7 billion ($36 million). In the medium term, the company aims to gain between ZAR 7 billion ($369 million) and ZAR 8 billion ($422 million) in expense efficiencies over the next three years.
Actis signs agreement to sell Octotel
Actis has signed an agreement to sell Octotel to a consortium of investors. The consortium is led by African Infrastructure Investment Managers and comprises STOA Infra and Energy, and Thebe Investment Corporation. The conglomerate is also acquiring a minority stake in RSAWeb. However, both transactions are subject to customary regulatory approvals and closing conditions.
Globe Telecom sells off 154 towers to MIDC for $242 million (Philippines)
Globe Telecom has closed the sale of 154 towers to Miescor Infrastructure Development Corporation (MIDC) for PHP 13.5 billion ($242 million). In a disclosure, Globe noted that the tower transfer is part of its separate deals with MIDC and Frontier Tower Associates Philippines for the sale of a total of 5,709 towers for PHP 71 billion, signed in August 2022. As of March 18, 2024, Globe has transferred 1,348 of 2,180 towers to MIDC, and 2,214 of 3,529 towers to Frontier Towers.
