Idea Cellular announces merger with Vodafone India (India)
Idea Cellular’s board of directors has approved its merger with Vodafone India and its wholly owned subsidiary, Vodafone Mobile Services. The deal will lead to the creation of the largest telecom operator in the Indian telecom market. As per the terms of the merger, Vodafone will own 45.1 per cent stake in the combined entity after transferring 4.9 per cent stake to the promoters of Idea Cellular for Rs 387.4 billion in cash. Kumar Mangalam Birla and other promoters of the Idea Group will hold 26 per cent stake in the company. The remaining stake will be owned by the public. The merger is expected to be completed by 2018.
Bharti Airtel confirms acquisition of Tikona’s 4G spectrum
Bharti Airtel has entered into a definitive agreement with Tikona Digital Networks to acquire its 4G business, including the company’s broadband wireless access spectrum and 350 telecom tower sites in five telecom circles. The deal is reportedly valued at Rs 16 billion. Tikona currently has 20 MHz of spectrum in the 2300 MHz band in the Gujarat, Uttar Pradesh (East), Uttar Pradesh (West), Rajasthan and Himachal Pradesh circles. As per the agreement, the acquisition of Tikona’s 4G business in Gujarat, Uttar Pradesh (East), Uttar Pradesh (West) and Himachal Pradesh will be undertaken by Airtel, while in the Rajasthan circle, it will be carried out by Airtel’s subsidiary, Bharti Hexacom Limited. However, the acquisition is subject to requisite regulatory approvals.
Bharti Infratel to sell 21.63 per cent stake to Nettle Infrastructure
Nettle Infrastructure Investment, a wholly owned subsidiary of Bharti Airtel, will acquire 21.63 per cent stake in Bharti Infratel. As per the terms of the transaction, Nettle Infrastructure will buy 400 million equity shares of Bharti Infratel for around Rs 124 billion. It will acquire the stake at or around the market price prevailing on the date of acquisition. On completion of the transaction, Bharti Airtel’s stake in Bharti Infratel will come down from 71.96 per cent at present to 50.33 per cent.
Bharti Airtel receives shareholders’ approval to raise up to Rs 100 billion
Bharti Airtel has received its shareholders’ approval to raise up to Rs 100 billion through the sale of corporate bonds. Airtel had sought permission for the same in January 2017. The proceeds from the bond sale are likely to be used by the company for funding its recent acquisitions and network expansion.
RCOM obtains approval for merger with Aircel
Reliance Communications (RCOM) has obtained approval from the Competition Commission of India (CCI) to spin off and merge its wireless division with Aircel and Dishnet Wireless Limited. The company had earlier received approvals from the Securities and Exchange Board of India, the National Stock Exchange and the Bombay Stock Exchange for the proposed merger. RCOM has now filed an application with the National Company Law Tribunal, Mumbai bench for its approval. The company had signed a definitive agreement to merge its wireless operations with Aircel in September 2016. Once the deal is completed, RCOM and Aircel’s parent company Maxis Communications will hold 50 per cent stake each in the merged entity and have equal representation on the board and committees.
Airtel’s and Millicom International Cellular’s Ghana subsidiaries to merge (Ghana)
Bharti Airtel has entered into an agreement with Millicom International Cellular to combine the operations of their subsidiaries, Airtel Ghana and Tigo Ghana. The transaction is subject to approvals from the relevant authorities in Ghana. Airtel and Millicom will have equal ownership and governance rights in the combined entity.
Huawei acquires stake in Bakrie Telecom (Indonesia)
The Indonesian unit of China-based Huawei Technologies, Huawei Tech Investment Company Limited, has acquired 16.83 per cent stake in Indonesia’s Bakrie Telecom (BTel) through a bond conversion. The move involves the conversion of IDR 1.23 trillion ($92 million) of debt into shares. This will help BTel improve its long-term financial position. In 2016, BTel issued mandatory convertible bonds worth IDR 7.6 trillion to restructure its debt. Even though these bonds have a long tenor, Huawei chose to convert it into shares. According to the Indonesia Stock Exchange, shares resulting from the conversion will not be available for trade for one year. With this ownership, Huawei Tech Investment is likely to get a right to place representatives on BTel’s board of directors or commissioners.
iflix raises $90 million for expansion (Malaysia)
Malaysia-based iflix has received new funding worth $90 million to expand its service to other countries. iflix is a Netflix-like service that currently covers Southeast Asia and other emerging markets. The latest round of funding was financed by international cable company Liberty Global; Middle East- and Africa-focused operator Zain; and existing backers Sky, venture builder the Catcha Group, and US-based Evolution Media Capital (EMC). Sky had made a $45 million investment in 2016, while the Catcha Group and EMC provided $30 million as seed funding in 2015. Further, iflix has confirmed that it is in negotiations with other investors with a view to enlarge this round beyond $90 million.
