Idea Cellular raises Rs 35 billion through QIP (India)
Idea Cellular has raised Rs 35 billion through a qualified institutional placement (QIP). The company has issued and allotted about 424.2 million equity shares to qualified institutional buyers at an issue price of Rs 82.5 per equity share (including a premium of Rs 72.5 a share). The issue allocation was approximately 56 per cent and 44 per cent to Indian and foreign investors respectively. DSP Merrill Lynch and Citigroup Global Markets India were the global coordinators and bookrunning lead managers for the issue. This equity raising is in addition to the recent infusion of Rs 32.5 billion by Idea’s promoters. The total amount will help reduce Idea’s net debt by approximately Rs 67.5 billion.
Aircel files for bankruptcy with NCLT’s Mumbai bench
Aircel has filed for bankruptcy with the National Company Law Tribunal’s (NCLT) Mumbai bench. The move comes after its Malaysian parent company, Maxis Communications, decided not to infuse more capital into the Indian business. Aircel has a debt of Rs 155 billion, which it has failed to recast even after several attempts. Recently, Idea and Vodafone suspended interconnect services to Aircel due to the non-payment of outstanding dues. Tower companies GTL and the American Tower Corporation have also moved court to recover their dues from Aircel.
Singtel to invest Rs 26.49 billion in Bharti Telecom
Singapore Telecommunications (Singtel) has decided to increase its stake in Bharti Airtel by investing Rs 26.49 billion in Airtel’s parent company, Bharti Telecom Limited. The investment will take place by way of preferential allotment of shares. The proceeds will be used for Bharti Airtel’s debt reduction. As per the agreement, Singtel International Investments, a wholly owned subsidiary of Singtel, will be allotted up to 85.45 million new equity shares in Bharti Telecom at an issue price of Rs 310 each. With this transaction, Singtel’s total stake in Bharti Telecom will increase to 48.9 per cent from 47.17 per cent. However, Singtel’s economic interest in Bharti Airtel will rise by 0.9 per cent to 39.5 per cent. The transaction is expected to be completed by March 2018.
ACT plans to launch an IPO to raise around Rs 20 billion
Atria Convergence Technologies (ACT), a broadband service provider controlled by private equity (PE) firms TA Associates and True North, has hired investment banks to help it raise approximately Rs 20 billion through an initial public offering (IPO). The proposed IPO will be a mix of fresh fundraising and stake sales. The IPO is likely to see a total dilution of around 25 per cent stake. Post the IPO, the company will be valued at a little over $1 billion. As of March 31, 2017, True North and TA Associates owned 56.4 per cent and 37.3 per cent stake in ACT respectively.
NTT Corporation plans to repurchase its shares worth $1.4 billion (Japan)
Japan-based Nippon Telegraph and Telephone Corporation plans to repurchase its own shares worth $1.4 billion. The company intends to repurchase up to 31 million shares (equivalent to 1.57 per cent of the total number of shares) until June 30, 2018. The move will help the company enhance its investor returns, as NTT’s shares had fallen by approximately 10 per cent in the year 2017 on account of growing competition in its home telecom market.
Globe Telecom to divest its tower assets (Philippines)
Globe Telecom is looking at divesting all or part of its tower assets. The operator has initiated talks with independent third parties to establish a tower company. These towers will be open for lease to new and existing players. Globe has more than 8,000 cell towers across the Philippines.
Vodafone Group sells stake in Qatar JV (Qatar)
The Vodafone Group has sold its entire stake in its Qatar joint venture (JV), Vodafone Qatar, to the Qatar Foundation for a total cash consideration of QAR 1.35 billion. Of the total payment, there will be an upfront payment of QAR 1.25 billion and QAR 100 million will be payable a year after the completion of the stake sale. As per the deal, the Vodafone Group and Vodafone Qatar have entered into a partner market agreement with an initial term of five years. Under this agreement, the former will provide technical support as well as allow the operator to continue using the Vodafone brand for the entire term.
MTN Nigeria to launch an IPO in July 2018 (Nigeria)
The South Africa-based MTN Group is likely to list its Nigerian unit by July 2018. The company plans to raise around $400 million from the IPO. The offer price is expected to be around $0.20 per share for the IPO. In July 2016, MTN Nigeria had announced its plans to list its shares on the Nigerian Stock Exchange, subject to suitable market conditions, and had appointed Citigroup and Stanbic IBTC Capital as joint transaction advisers and global coordinators.
