Vodafone India and Idea Cellular merger (India)
The Vodafone Group has confirmed that it is in talks with Idea Cellular for a potential merger of its Indian division. The duo is considering an all-share merger, which may see Idea issuing new shares to Vodafone, and Vodafone India being deconsolidated from the UK-based group. Idea and Vodafone have appointed Deloitte and EY respectively to carry out due diligence for the proposed merger.
RIL planning to raise $2.25 billion to expand RJIL’s services
Reliance Industries Limited (RIL) is planning to raise $2.25 billion in a bid to replace its existing high-cost borrowings and expand the services of its telecom unit, Reliance Jio Infocomm Limited (RJIL). RIL is planning to raise the money through external commercial borrowings. It is reportedly in talks with at least 10-12 investment bankers and is planning to soon start marketing roadshows in North America, Europe, the Middle East and Asia.
Micromax to launch a new fund for investments in start-ups
Micromax is setting up a new independent fund, Orbis Capital, for investing in global consumer internet companies that have relevance to the Indian market. The fund will raise up to $100 million (Rs 6.8 billion), and will look to invest in 10-12 start-ups with a ticket size of $3 million-$5 million each. Orbis Capital will raise money from private equity firms and pension funds, among other investors in India and overseas. Further, Micromax is planning to exit from two of the 10 companies in its investment portfolio by March 2017.
Tikona gets $171 million funding from a US-based government agency
Tikona Digital Networks, which is owned by a group of investors including Goldman Sachs, Oak Investment, The International Finance Corporation (IFC) and Everstone Capital, has recently received funding of $171 million from the Overseas Private Investment Corporation, a US-based government development finance agency. The funding, which is a commercial loan, would provide Tikona with the liquidity necessary for its revival. The company plans to use the funds to launch a 4G-based home internet network in 60 cities over the next 18 months.
Keysight acquires Ixia in an all-cash transaction (USA)
Keysight Technologies has signed a definitive agreement with Ixia to acquire the latter in an all-cash transaction. The deal, which is expected to be completed by October 2017, is valued at around $1.6 billion. As per the agreement, Ixia shareholders will receive $19.65 per share in cash. The combined entity is expected to accelerate Keysight’s growth by creating a powerful innovation engine. Moreover, it will enhance Keysight’s scale and deepen its market penetration.
Summit receives green signal for IPO (Bangladesh)
Bangladesh-based Summit Communications has received the go-ahead from the telecom regulator for its initial public offering (IPO). Summit Communications provides nationwide telecom transmission network service. The company will now apply to the Bangladesh Securities and Exchange Commission to complete the necessary formalities to launch the IPO.
Liquid Telecom completes acquisition of Tanzanian ISP (Tanzania)
Pan-African telecom group Liquid Telecom has completed the acquisition of internet service provider (ISP) Startel Tanzania, which offers services under the brand name Raha. The deal will help in strengthening Raha’s position in the Tanzanian market as it can now make more investments in both its network and services. This includes the roll-out of fibre across the country, the development of the firm’s data centre and an increase in the number of free Wi-Fi hotspots.
Mobily seeks loan to re-profile its debt (Saudi Arabia)
Saudi Arabia-based telecom operator Etihad Etisalat (Mobily) has signed a $2.1 billion Sharia-compliant cost-plus-profit facility agreement with six banks – the National Commercial Bank, Banque Saudi Fransi, the Samba Financial Group, Saudi British Bank, Rayed Bank and Al-Rajhi Bank. This is an unsecured seven-year loan with a two-year grace period. Mobily will use the funds to re-profile its existing debt.
Mobilink and Warid merger under way (Pakistan)
Mobilink and Warid have received permission from the Islamabad High Court to merge the two businesses into a single brand. As per news reports, the merged entity will use the “Jazz” brand previously used by Mobilink for its prepaid offerings. Post the merger, Warid customers will be transferred to Jazz. VimpelCom and the Abu Dhabi Group, the respective parents of Mobilink and Warid, had agreed to combine their businesses in November 2015. Following this, in July 2016, a share swap took place, wherein Mobilink acquired 100 per cent shares in Warid and the Abu Dhabi Group shareholders acquired a 15 per cent stake in Mobilink.
