Srei completes 18.5 per cent stake sale in Viom Networks for Rs 29.31 billion (India)
Srei Infrastructure Finance has offloaded its 18.5 per cent stake in Viom Networks to the American Tower Corporation (ATC) for Rs 29.31 billion. The firm is likely to use the proceeds to reduce its debt and interest costs, thereby augmenting capital and improving future profitability. This comes after the Cabinet Committee on Economic Affairs approved the proposed acquisition of a 51 per cent stake in Viom Networks by ATC. The deal, valued at
Rs 76.35 billion, was announced in October 2015. Viom was established as a joint venture between Srei Infrastructure Finance and Tata Teleservices Limited, with the latter holding a 54 per cent stake. The remaining 27.5 per cent is owned by a group of financial investors, including IDFC Private Equity, SBI Macquarie, Funderburk Mauritius Limited (Oman Investment Fund) and GIC Investments Pte Limited (Singapore).
RouteSMS plans to launch its IPO
Mumbai-based messaging and voice interface company RouteSMS is planning to launch its initial public offering (IPO) by October 2016. The company is likely to dilute 25-30 per cent stake through the IPO, which is being handled by YES Bank and Kotak Mahindra Bank. The company, however, is yet to file its draft prospectus with the Securities and Exchange Board of India. It expects to raise Rs 5 billion through the IPO, of which Rs 4 billion will be spent on upgrading technology and cross-selling options and the remaining is likely to be spent on acquiring a payments company such as a mobile wallet.
Bharti Airtel planning to sell more than 5 per cent stake in Bharti Infratel
Bharti Airtel is reportedly planning to sell more than 5 per cent stake in its tower arm Bharti Infratel through an open market block deal. Currently, Airtel owns a 71.7 per cent stake in Bharti Infratel, and at current valuations, a 5 per cent stake in the latter will be worth Rs 37.48 billion. Airtel plans to use the sale proceeds to reduce its debt.
RJIL to raise Rs 22.5 billion through debentures on a private placement basis
Reliance Jio Infocomm Limited (RJIL) is planning to raise up to Rs 22.5 billion by issuing redeemable non-convertible debentures on a private placement basis. In May 2015, the company had raised $750 million (about Rs 45 billion) from a consortium backed by the Korea Trade Insurance Corporation to buy telecom equipment from Samsung Electronics and Ace Technologies.
NTT Data to buy Dell’s IT services business for $3.06 billion (Japan)
Japan-based NTT Corporation’s IT and consulting unit NTT Data has entered into an agreement with Dell, Inc. to buy the latter’s IT services business for $3.06 billion. The move will help the NTT unit expand its sales outside Japan. The acquisition is likely to be NTT Data’s largest so far, and will enhance its access to the US and other foreign markets. This, in turn, will help the company drive the sluggish economic growth faced in Japan. For Dell, the deal is a part of its divestment strategy ahead of its merger with EMC scheduled for later in 2016. The company is likely to use the proceeds from the deal to finance its agreement with EMC.
Huawei plans to raise $2 billion through a bonds issue (China)
Huawei Technologies is planning to raise $2 billion by selling a 10-year US dollar-denominated bond. The move will help the operator expand its smartphone business. The company is looking at acquiring a bigger share in the global smartphone market, which is currently led by Apple and Samsung. Huawei is discussing the terms of the issue with banks, and the size of the deal may vary from its current estimate of $2 billion. The banks that are likely to manage the bond issue include DBS Bank, the Australia and New Zealand Banking Group, Standard Chartered Bank and Bank of China. Earlier, in May 2015, Huawei had issued a $1 billion 10-year bond, which was oversubscribed owing to strong demand.
Helios Towers Tanzania secures loan worth $95 million (Tanzania)
Helios Towers Tanzania (HTT), a subsidiary of Helios Towers Africa, has secured a loan worth $95 million from the Standard Bank Group. The funds will be mainly used to expand the company’s network of telecom towers across Tanzania.
Vumatel enters into a finance deal with Standard Bank (South Africa)
South Africa-based Vumatel has concluded a finance deal with Standard Bank. The deal for raising debt capital will help Vumatel ramp up its delivery and expand into new markets in South Africa. The package includes an agreed drawdown facility. Vumatel plans to invest R3 billion over the next two years in optic fibre networks in order to service the residential sector. Earlier, in October 2015, Vumatel and Investec had concluded a deal in which the latter had acquired a minority stake in the fibre service provider. s