MBT to acquire Axes Technologies (India)

Pune-based telecom services company Mahindra British Telecom (MBT) is to acquire Dallas-based Axes Technologies, a telecom services company, for about $40 million. MBT is likely to buy French telecom equipment maker Alcatel’s stake in Axes. Axes Technologies has a development centre with more than 600 personnel in Bangalore.

Siemens announces financial results for 2004-05

Siemens Limited has reported a 68 per cent increase in net profits for the financial year ended September 30, 2005 at Rs 2.548 billion. During this period, the company’s sales turnover jumped by 54 per cent over the previous year to reach Rs 27.48 billion.

The board of directors has recommended a dividend of Rs 14.5 (145 per cent) for each equity share of Rs 10, including the interim dividend of 45 per cent.

BSNL registers growth in profit

Bharat Sanchar Nigam Limited (BSNL) has registered a profit of over Rs 100 billion in 2004-05, while revenues rose by about 6 per cent to cross Rs 360 billion.

The company paid the government Rs 2 billion as interim dividend, taking the total dividend to Rs 11.75 billion.

Satyam sells stake in Sify

Satyam Computer Services has sold its entire 31.6 per cent stake in Sify to Infinity Capital Ventures LP, a company controlled by Silicon Valley entrepreneur Raju Vegesna for Rs 2.86 billion ($62.6 million). In a separate Rs 1.72 billion ($37 million) transaction, Infinity Capital also agreed to buy approximately 6.7 million newly issued shares directly from Sify at a purchase price of Rs 256.09 (about $5.6) a share in cash. This deal is expected to be completed by the end of 2005, after receiving shareholder and regulatory approvals. Infinity Capital will hold 40 per cent of Sify after the transaction.

Reliance Infocomm to raise $500 million

Reliance Infocomm plans to raise $500 million from overseas markets by December 2005, mainly to refinance its high-cost debt. The company had reportedly taken high-cost loans in the past while rolling out networks across the country.

HTIL raises HK$9 billion in loans (Hong Kong)

Hutchison Telecommunications International Limited (Hutchison Telecom) announced that it has successfully completed a HK$9 billion three-year senior revolving loan facility with a consortium of 18 banks. As a result of strong demand, the amount of the facility was increased from HK$8 billion to HK$9 billion. The facility will be used to refinance existing maturing debts. The loan is priced at a margin of 0.75 per cent above the Hong Kong Inter Bank Offer Rate (Hibor), compared to 0.85 per cent above Hibor on the maturing loan.

Taiwan’s Compal to buy VIBO Telecom rights shares for TW$855 million (Taiwan)

Compal Electronics’ board has reportedly decided to buy 85.5 million rights shares in VIBO Telecom, Inc. for TW$855 million. It now owns 275.55 million shares in VIBO Telecom, representing 18.37 per cent stake, at a cumulative cost of TW$2.36 billion, according to a statement by the company. Compal Electronics manufactures notebook personal computers. Telefonica raises stake in China Netcom (China) Spanish telecom giant Telefonica SA is to raise its stake in the second largest fixed line carrier in China from 5 per cent to 9.9 per cent as part of a strategic alliance with China Netcom Group Corporation.

The additional stake is expected to be worth around $540 million. The Spanish carrier will buy shares from non-public minority Chinese shareholders, Netcom said in a statement to the Hong Kong Stock Exchange.

MTC raises $2.28 billion in largest share issue (Kuwait)

Kuwait’s Mobile Telecommunications Company (MTC) has raised $2.28 billion in the largest share issue in the oil-rich Gulf emirate, according to MTC officials. MTC reportedly sold 533 million shares to double its capital in order to finance expansion plans and the recent major acquisition of Dutch firm CelTel, which operates in 13 African nations. The issue was meant to allow MTC to finance new acquisitions as part of its plans to become a global company. MTC, in which the state owns 24 per cent stake, operates in Kuwait, Jordan, Bahrain, Iraq and Lebanon. It is the larger of Kuwait’s two mobile phone service providers.

PT Excelcom to offer 8 per cent on bonds (Indonesia)

Indonesia’s third largest cellular phone operator PT Excelcomindo Pratama will offer a yield of 8 per cent on its bonds worth a total of $250 million. The bonds are to be sold in January. The funds raised from the sale of the seven-year bonds will be used to finance the company’s capital expenditure. JP Morgan, UBS and CIMB Niaga have been named as joint lead managers and book makers for the bonds. The firm still has a debt of $420 million, but the amount is expected to decline to $350 million after it makes a payment of $70 million of debt maturing on January 18, 2006.