Reliance Communications gears up to sell tower arm
RCOM has entered into exclusive negotiations with private equity consortium of Blackstone and Carlyle to sell its tower unit. The deal, which is likely in December 2011, is expected to value the tower asset in excess of $3.5 billion making it India?s largest PE deal till date. Blackstone is likely to be the lead investor in the buyout transaction. Meanwhile, RCOM may soon conclude a tower sharing deal with Mukesh Ambani-owned Reliance Infotel ahead of the tower unit sale which ay help the valuation of the tower unit for which the private equity consortium had offered a base price of $3 billion. The tower unit sale would help offload a substantial part of the Rs 320 billion debt on RCOM?s books.
Infotel acquires stake in Extramarks Education (India)
Reliance Industries Limited (RIL)-owned Infotel has acquired a 38.5 per cent stake in digital learning solutions provider Extramarks Education. The investment has been made through Reliance Strategic Investments, an affiliate company of RIL. The amount and financial details of the deal have not been disclosed. However, it is reported that RIL will infuse fresh capital in the venture and the deal will not result in any dilution of equity in Extramarks. The move is expected to help RIL strengthen its content pipeline.
GTL?s debt restructuring delayed
The debt restructuring of GTL Limited and its group companies has been deferred till end-November 2011. Although the restructuring package was intended to have been readied by end-October 2011, it faced problems related to equity issuance with the promoters. The lenders are reportedly seeking better equity terms for the future interest income they are likely to forgo. The State Bank of India (SBI), ICICI Bank, Bank of Baroda and IDBI Bank are among the lenders to GTL and its group entities. SBI Capital Markets, the investment banking arm of SBI, is acting as the adviser for reorganising GTL?s debt obligations.
Tower Vision shortlists stake sale proposals
Tower Vision?s shareholders have shortlisted proposals from prospective bidders contending for a stake in the company. These include tower companies like Bharti Infratel, the American Tower Company as well as buyout fund Carlyle and other financial investors. Some of these bids are for a controlling stake in the company while others are for a minority stake. Tower Vision?s investors are seeking a valuation of more than $700 million for their stake in the company.
Tulip Telecom to invest Rs 2.7 billion in its data centre and telecom business
Enterprise data services provider Tulip Telecom has decided to invest about Rs 2.7 billion in its data centre and telecom business by March 2012. Of the total investment, Rs 1 billion will go into the data centre at Bangalore, which will be inaugurated in December 2011. The remaining amount will be invested in other business lines. The company wants to upgrade its offerings to include cloud computing, software as a service and managed services.
Kavveri Telecom completes acquisition of Rymsa Telecom
Bangalore-based Kavveri Telecom has announced the complete acquisition of Spain-based Rymsa Telecom Business from Radiacion y Microondas SA. The acquisition is aimed at strengthening Kavveri?s existing sales channels for group firms in Europe and Latin America, as well as to enhance the company?s product portfolio. The company expects that the deal will increase its top line revenue by Euro 15 million. Kavveri Telecom is likely to invest around Euro 20 million in Rymsa Telecom.
MTS acquires Tatarstan-based Teleradiokompania (Russia)
Russian operator MTS has acquired 100 per cent stake in Tatarstan-based Teleradiokompania, which operates under the TVT brand. The company has a presence in 15 cities across the Republic of Tatarstan. Its broadband network covers 600,000 households, with broadband services currently offered in the cities of Kazan, Naberezhnye Chelny and Nizhnekamsk. The deal is worth $162.9 million, although MTS will also assume the company?s net debt of $17.1 million. The acquisition will enable MTS to strengthen its leadership position in Tatarstan and enter the pay-TV, broadband as well as fixed telephony markets in the republic.
Hong Kong?s PCCW to list its core telecom assets (Hong Kong)
Hong Kong-based fixed line operator PCCW plans to raise about $1.4 billion by listing its core telecom assets as a business trust on the Hong Kong Stock Exchange. PCCW expects to price its shares in the telecom trust at HKD 4.53-HKD 5.38 each. According to a Dow Jones Newswires calculation, the company will offer about 2.05 billion units in the trust. Based on the indicative price range, the trust would have a market capitalisation of HKD 29.07 billion-HKD 34.52 billion. The initial public offering, which has been marketed to investors since October 25, 2011, will offer shareholders a yield of 7.5-8.9 per cent for 2012.
Saudi Arabia-based Etihad Etisalat to conclude refinance agreement with Saudi banks (UAE)
Etihad Etisalat (Mobily), Saudi Arabia?s second largest phone company, is reportedly in the process of concluding an Islamic refinance agreement valued at $2.7 billion with Saudi banks. Mobily will refinance three loans into one long-term facility made up of four tranches. The operator has agreed to a competitive Murabaha rate of Saibor (Saudi Arabia Interbank Offered Rate) plus 70 basis points for two tranches, and Saibor plus 65 basis points for the other two tranches.
