Airtel sells 3.65 per cent stake in Bharti Infratel to raise Rs 25.7 billion (India)
Bharti Airtel has divested a 3.65 per cent stake, or 67.53 million shares, in Bharti Infratel to raise over Rs 25.7 billion. The proceeds from the sale will be used primarily to reduce the company’s debt. According to the company filings, Bharti Airtel had a net debt Rs 878.4 million at the end of June 2017. UBS and J.P. Morgan were the joint placement agents for the transaction. Earlier, in March 2017, Airtel sold a 10.3 per cent stake in the tower unit to a consortium of investors to raise Rs 61.93 billion, which was used to pare debt and counter sector competition.
TTSL to repay debt through fund infusion by its parent firm and investment monetisation
Tata Teleservices Limited (TTSL) is reportedly planning to meet its loan obligation of about Rs 40 billion through a fund infusion from its parent company, Tata Sons. It is also planning to raise funds from its own shareholders by issuing compulsorily convertible non-cumulative preference shares or optionally convertible non-cumulative preference shares on a rights basis. Meanwhile, TTSL is confident of meeting its repayment obligations as well as the operating and capital expenditure requirements for the next 12 months based on the undrawn loan facilities, approved loan sanction facilities, working capital management, fund infusion from promoters and monetisation of investments in its subsidiaries. As per the company’s annual report, it incurred a loss of Rs 46.17 billion during 2016-17 and has accumulated losses of Rs 303.01 billion as of March 2017, which has completely eroded its net worth. Further, the company states that it has a net current liability of Rs 83.82 billion and loans worth Rs 40.4 billion, which are due for repayment during 2017-18.
Bharti Airtel’s MD and CEO sells 0.12 million shares to Bharti Telecom
Bharti Airtel’s managing director (MD) and chief executive officer (CEO) Gopal Vittal has sold 0.12 million shares of the company. The shares were bought by Bharti Airtel’s promoter firm, Bharti Telecom, through an open market transaction. According to the block deal data available with the National Stock Exchange, the shares were offloaded at an average price of Rs 416.05 per share, valuing the transaction at Rs 50 million.
Contract mobile phone manufacturer Dixon to launch Rs 7 billion IPO
Mobile handset contract manufacturer Dixon Technologies is planning to launch an initial public offering (IPO) of Rs 7 billion in September 2017. With this move, Dixon will become the first Indian mobile phone producer to be listed since the launch of the Make in India initiative. The funds raised through the IPO will be used for setting up a new plant for LED televisions and LED bulbs at Tirupati, paying off debt and venturing into new businesses.
Omantel acquires 9.84 per cent stake in the Zain Group (Kuwait)
Oman Telecommunications Company (Omantel) has acquired a 9.84 per cent stake, amounting to 425.7 million treasury shares, in the Zain Group. The shares have been bought at an offer price of KWD 0.6 per share for a total cash consideration of KWD 255.4 million. Omantel and Zain entered into a share purchase agreement (SPA) in August 2017. Credit Suisse is the exclusive financial adviser and Freshfields Bruckhaus Deringer LLP is the legal adviser to Omantel.
PIC acquires 10 per cent stake in Vodacom Tanzania (Tanzania)
South Africa’s government-owned investment firm, the Public Investment Corporation (PIC) has acquired a 10 per cent stake in Vodacom Tanzania by participating in the latter’s IPO, which concluded in early August 2017. Vodacom raised $209 million through the sale of 560 million shares, of which 60 per cent were purchased by domestic buyers and the remaining were for international investors. PIC bought the entire 40 per cent tranche available for international investors.
TSTT completes acquisition of Massy Communications (Trinidad & Tobago)
The Telecommunications Services of Trinidad & Tobago (TSTT) has completed the acquisition of Massy Communications for $31.3 million. This is lower than the amount previously agreed to by the companies in the SPA signed in May 2017. As a part of the acquisition, TSTT has bought Massy’s retail business including 900 km of optic fibre infrastructure, which caters to about 34,000 homes and 6,000 customers. The deal also covers Massy’s enterprise business, which offers long distance termination for international carriers and caters to more than 50 corporate customers.
Dimension Data to sell its wireless and fibre infrastructure unit to Vulatel (South Africa)
Dimension Data Holdings is planning to sell its wireless and fibre business arm, Dimension Data Advanced Infrastructure, to Vulatel. The move follows the company’s management assessment that the two businesses are not core to its value proposition. The company wants to focus on growing and strengthening its existing core business, and venturing into newer areas such as data analytics, internet of things, hybrid IT, digital workplace and cybersecurity. Dimension Data Advanced Infrastructure operates long-haul, metro and access networks across South Africa, delivering microwave backbone, point-to-point, point-to-multipoint and Wi-Fi installations.