GTL Infrastructure – CNIL’s total debt reduced by half post-SDR implementation (India)
The combined debt of GTL Infrastructure Limited and Chennai Network Infrastructure Limited (CNIL) has reduced from Rs 85.53 billion to Rs 41.93 billion, following the implementation of a strategic debt restructuring (SDR) scheme. Post the SDR, their earnings before interest, taxes, depreciation and amortisation have moved up from Rs 5.93 billion in 2010-11 to Rs 11.21 billion in 2016-17, and are likely to exceed Rs 13 billion in 2017-18. Further, as part of the SDR, GTL Infrastructure is merging its operations with CNIL in a 1:1 share ratio. GTL Infrastructure has received the Competition Commission of India’s approval for the merger, which is now subject to statutory approvals. The merged entity will continue to operate as GTL Infrastructure. CNIL was created as a special purpose vehicle to park Aircel’s 17,500 telecom towers and was acquired by GTL Infrastructure in 2010 for Rs 84 billion. The company was, however, operating as a separate entity till the finalisation of the SDR.
Aditya Birla Nuvo transfers around 23 per cent stake in Idea Cellular to Grasim Industries
Aditya Birla Nuvo Limited has transferred around 23 per cent of its stake in Idea Cellular to its subsidiary, Grasim Industries Limited. The transferred shares are reportedly worth Rs 74.45 billion. According to Idea Cellular, 837,526,221 equity shares of Rs 10 each (equivalent to 23.23 per cent of the total paid-up equity share capital) have been transferred. The transfer follows a composite scheme of arrangement between Aditya Birla Nuvo and Grasim Industries, and Aditya Birla Financial Services Limited and their respective shareholders. The scheme was approved by the National Company Law Tribunal on June 1, 2017.
RJIL plans to raise Rs 20 billion through a rights issue
Reliance Jio Infocomm Limited (RJIL) is planning to raise Rs 20 billion through a rights issue of optionally convertible preference shares (OCPSs). As per the company’s filing with the Bombay Stock Exchange, RJIL will make a rights issue of 4 billion (9 per cent) non-cumulative OCPSs of Rs 10 each for cash at a premium of Rs 40 a piece. Each OCPS will be redeemed at Rs 50 or converted to five equity shares of Rs 10 each as per the company’s convenience but not later than a period of 10 years.
Netlink NBN Trust raises $1.72 billion through IPO (Singapore)
Netlink NBN Trust, the company tasked with designing, building, owning and operating Singapore’s next-generation broadband network Next Gen NBN, has raised around $1.72 billion through an initial public offering (IPO). This is the largest IPO to be floated on the Singapore Stock Exchange in six years and the city state’s largest business trust listing to date. The IPO, which comprised 2.9 billion shares, was oversubscribed with strong support from both institutional and retail investors. Post the offering, Singtel owns 24.99 per cent stake in Netlink NBN Trust. The trust owns a network comprising 76,000 km of optic fibre cables, 16,200 km of ducts and 62,000 manholes connecting residential and non-residential locations.
MyRepublic plans to go in for public listing in end-2018
Singapore-based broadband service provider MyRepublic is planning to launch an IPO by end-2018. The funds will be used for the expansion of its operations across Asia, including Thailand, Cambodia and Sri Lanka. The company is considering getting listed in Singapore, Hong Kong or Australia. It has also initiated the process to raise funds amounting to approximately $72 million from private equity players and existing strategic investors by September-October 2017. These funds will help the company enhance its valuation at the time of the IPO. Previously, MyRepublic had raised funds of S$120 million. The company operates in Singapore, Indonesia, Australia and New Zealand.
Vodacom’s minority shareholders approve stake acquisition in Safaricom (Kenya)
The Vodacom Group’s minority shareholders have voted in support of the company’s proposed acquisition of a 34.9 per cent stake in Kenya’s Safaricom. In May 2017, the UK-based Vodafone Group agreed to transfer a part of its indirect shareholding in Safaricom to Vodacom. Vodafone currently holds a 40 per cent indirect interest in Safaricom through its wholly owned subsidiary, Vodafone Kenya Limited (VKL). Under the terms of the deal, Vodacom agreed to acquire an 87.5 per cent shareholding in VKL, representing a 34.9 per cent indirect interest in Safaricom. In exchange, Vodafone will acquire 226.8 million new ordinary Vodacom shares, increasing its ownership in the Vodacom Group from 65 per cent to 69.6 per cent. The UK-based group will retain the remaining 12.5 per cent shareholding in VKL following the transfer. The transaction, which has a value of $2.6 billion, is expected to close by the third quarter of 2017, subject to regulatory approvals and conditions prevalent in Kenya and South Africa.