India and overseas
NTT DOCOMO decides against raising its stake in TTSL (India)
Japan-based telecom operator NTT DOCOMO will not exercise the call option to raise its stake in Tata Teleservices Limited (TTSL). However, DOCOMO has stated that it may reconsider increasing its stake in the company in 2013-14, after seeking clarity with regard to regulations in the Indian telecom sector. Earlier, in 2008, DOCOMO had paid $2.7 billion for a 26 per cent stake in TTSL, and purchased two call options to increase this stake to 35 per cent in 2012 and 51 per cent in early 2014.
Telenor constitutes a new JV in India
Norway-based telecom operator Telenor ASA has signed an agreement with Lakshdeep Investments & Finance Private Limited to form an Indian joint venture (JV) ? Telewings Communication Private Limited. The JV will bid in the upcoming 2G spectrum auction. As per the agreement, Lakshdeep Investments will contribute about 26 per cent equity in the JV while Telenor would provide the remaining equity. Telenor will have operational control over the JV. All assets of Unitech Wireless (the erstwhile JV of Telenor and real estate company Unitech) will be transferred to the JV, subject to the necessary approvals from the government. Lakshdeep Investments & Finance Private Limited is owned by Sun Pharma?s executive director, Sudhir Valia.
Bharti Airtel to consolidate its operations
Bharti Airtel is reportedly planning to merge its Indian and African operations into a single entity under a global chief by mid-2013. Earlier, in August 2011, the operator had merged its Indian and South Asian units under its One Airtel initiative. The initiative is aimed at building synergies across Airtel?s multilocation operations, reducing operational costs and transforming its business from a voice-centric to a data- and customer-centric business.
Idea Cellular issues NCDs
Idea Cellular has issued 1,000 secured redeemable non-convertible debentures (NCDs) with a face value of Rs 10 million each at par. The debentures, with an aggregate value of Rs 10 billion, have been issued at a coupon rate of 9.45 per cent per annum.
Softbank acquires majority stake in Sprint (Japan)
Japan-based telecom operator Softbank Corporation has signed an agreement with US-based Sprint Nextel to acquire a 70 per cent stake in the latter for $20.1 billion. The agreement includes a termination clause under which the operator opting out of the contract would have to pay up to $600 million to the other. The acquisition is expected to be completed by mid-2013, following approvals from shareholders and regulatory bodies. Post-acquisition, Softbank?s recently created US subsidiary, New Sprint, will become a publicly traded company while Sprint Nextel will continue to operate as New Sprint?s subsidiary.
Capcom Limited to invest in Starcomms (Nigeria)
Nigerian telecom operator Starcomms has signed an agreement with the US-based financial investment group Capcom Limited, wherein the latter will make an investment of about $210 million in cash and assets in the company. Under the agreement, Starcomms will issue new equity shares to Capcom to increase its stake in Starcomms to 90.5 per cent. Besides, Capcom will inject $98 million in cash to finance the post-acquisition integration of assets and to meet ongoing short-term losses in the business. Capcom Limited was founded by MBC and is backed by PAC Asset Management, Bridgehouse Capital and OldonyoLaro Estates.
Qtel may acquire stake in Maroc Telecom (Qatar)
Qatar Telecom (Qtel) is reportedly planning to acquire France-based media and telecom company Vivendi?s 53 per cent stake in Morocco-based Maroc Telecom. As per industry sources, Vivendi has approached Credit Agricole and Lazard for advice on the proposed stake sale. Vivendi is planning to refocus on its media holdings and, consequently, is considering parting with some of its telecom assets. UAE-based Etisalat has also reportedly expressed interest in Vivendi?s stake in Maroc.
CITIC Telecom likely to increase stake in CTM (Hong Kong)
Hong Kong-based telecom operator CITIC Telecom International Holdings Limited is planning to increase its stake in Companhia de Telecomunicacoes de Macau (CTM) from the existing 20 per cent. CITIC Telecom is reportedly at advanced stages of discussions with Cable & Wireless Communications to acquire the latter?s 51 per cent stake in CTM. CITIC Telecom intends to fund the acquisition through its internal resources, and banks or through debt/ equity financing.
PLDT sells stake to BTF Holdings (Philippines)
Philippine Long Distance Telephone (PLDT) has reportedly sold a 23 per cent stake in the company to BTF Holdings, a subsidiary of the Philippines-based Beneficial Trust Fund. The stake has been valued at $3.61 million. PLDT issued redeemable preferred shares with full voting rights to dilute the foreign ownership in the company. Following the stake sale, foreign ownership in the company reduced from 59 per cent to 36 per cent. The move comes after the country?s Supreme Court passed an order that only shares with voting rights would be considered for determining foreign ownership in a company, which should not exceed 40 per cent. Foreign ownership in PLDT prior to stake sale was 64 per cent, which was in violation of the Supreme Court?s order.
