SSTL to raise Rs 60 billion (India)
Sistema Shyam TeleServices Limited (SSTL) is planning to raise Rs 60 billion to finance its expansion plans. The amount would be raised from Indian and international investors through the issue of non-convertible redeemable preference shares. The move would double the company?s existing authorised capital, from Rs 60 billion to Rs 120 billion, without changing its equity structure.
FLAG Telecom files for listing on Singapore Stock Exchange
FLAG Telecom, a part of the Reliance Communications (RCOM)-owned Reliance Globalcom, has filed a prospectus to get listed on the Singapore Stock Exchange. RCOM plans to divest its 75 per cent stake in FLAG Telecom for Rs 62.5 billion-Rs 75 billion. It will continue to hold the remaining 25 per cent. The bankers for the initial public offering include Deutsche Bank, DBS Singapore, Standard Chartered, and the Industrial and Commercial Bank of China. The transaction is expected to be completed by May 2012. The funds raised are likely to be used for reducing RCOM?s debt.
Axiata drops Tikona acquisition plans
Malaysia-based telecom group Axiata has given up its plans to acquire the Indian broadband wireless access provider, Tikona Digital Networks. Axiata ended the negotiation process due to disagreements over the valuation of Tikona?s assets. The continued uncertainty in the Indian telecom space, particularly in the wake of the cancellation of 2G licences by the Supreme Court, may also have impacted Axiata?s decision.
City Telecom sells assets to CVC Capital Partners (Hong Kong)
Hong Kong-based operator City Telecom has announced the sale of its telecom and broadband assets to London-based private equity firm CVC Capital Partners for $644 million. City Telecom is expected to use the proceeds from the sale to concentrate on its IPTV service, which it offers via the Hong Kong Broadband Network.
Dialog Axiata concludes acquisition of Suntel (Sri Lanka)
Sri Lanka-based Dialog Axiata has completed its acquisition of the local telecom operator Suntel for $34.5 million. Suntel will now be integrated into Dialog?s broadband networks division. The acquisition deal had been initiated in December 2011.
Telefonica merges its wireless and fixed line divisions in Colombia
Telefonica has merged its Colombia-based wireless division, Telefonica Moviles, with its fixed line unit, Telefonica Telecom, which it co-owns with the local government. As a part of the agreement, Telefonica will hold a 70 per cent stake in the combined entity, while the remainder will be held by the Colombian state. The Colombian government will take on 48 per cent of Telefonica?s pension payment obligations, helping the company to reduce its net financial debt of around $1.734 billion.
STI buys stake in Bakrie Telecom (Indonesia)
Sampoerna Telekomunikasi Indonesia (STI) has acquired a 10 per cent stake in Bakrie Telecom for $90 million. The stake acquisition is a part of the share swap deal between the two CDMA operators. As a part of the deal, Bakrie would also take a 35 per cent stake in STI and would have the option to acquire a majority stake in the venture over the next three years.
Kazakhtelecom to secure $200 million loan (Kazakhstan)
Kazakhstan-based incumbent telecom operator Kazakhtelecom is in the process of securing a long-term loan of $200 million from the European Bank for Reconstruction and Development. The proceeds would be used to support the expansion of the company?s fixed broadband network in the country.
PLDT secures PHP 5.5 billion loan (Philippines)
Smart Communications, the mobile services arm of the Philippine Long Distance Telephone (PLDT) Company, has secured a PHP 5.5 billion loan by issuing five-year and ten-year fixed rate notes to 18 primary institutional lenders. The proceeds will be used to refinance the company?s existing debt obligations. First Metro Investment Corporation served as the lead arranger and the sole book runner for the transaction.
TeliaSonera increases stake in Ncell (Nepal)
TeliaSonera has increased its stake in Spice Nepal (Ncell) from 60.4 per cent to 73 per cent. The financial details of the deal have not yet been disclosed. In another development, TeliaSonera has sold its 18.6 per cent stake in Cambodia-based operator Smart Mobile. The transaction underlines TeliaSonera?s strategy to be the major stakeholder in core holdings such as Ncell, and divest non-core minority interests such as Smart Mobile.
Cisco acquires NDS for $5 billion (UK)
Cisco has acquired the UK-based digital video technology company, the NDS Group, for approximately $5 billion. As per the deal, Cisco will acquire all of the NDS Group?s business and operations. It has been approved by the boards of directors of both the companies. The acquisition is expected to close during the second half of 2012, subject to customary closing conditions including regulatory review in the US.
