Bharti Airtel acquires Loop Telecom (India)

Bharti Airtel has acquired Loop Mobile in a deal valued at Rs 7 billion. The acquisition will result in transfer of Loop?s subscribers as well as network assets (including over 2,500 cell sites) in the Mumbai circle to Airtel. Loop Mobile?s licence in the Mumbai circle is set to expire in September 2014, and the company?s poor finances have meant that it did not participate in the recently concluded spectrum auction. With this, Bharti Airtel has become the top operator in Mumbai with over 7 million subscribers. Loop will use the proceeds to retire its outstanding debt of Rs 4 billion and the rest will go to the company?s promoters.

Bharti Airtel raises Euro 250 million in the international bond market

Bharti Airtel launched its second overseas bond issue in 2013-14 by raising Euro 250 million by reopening an existing issue (tap-issue) of Euro 750 million (4 per cent senior notes) in December 2013. Bharti Airtel International (Netherlands) priced the tap-issue at 275 basis points above the Euro-MS rate. Bharti Airtel is looking to raise Euro 1 billion from the bond issue and intends to use the proceeds to refinance its existing debt, which stood at Rs 576.43 billion as of December 31, 2013.

RCOM repays ECB of Rs 31 billion

Reliance Communications (RCOM) has repaid its external commercial borrowing (ECB) of Rs 31 billion. This is the third ECB that RCOM has repaid during 2013-14. Earlier, the operator had fully repaid two other syndicated ECBs of about Rs 62 billion and Rs 19 billion. With the repayment of the loan, RCOM has now fully liquidated its borrowings from 23 foreign banks and financial institutions.

Telenor raises stake in Telewings Communications to 74 per cent

Norway-based telecom operator Telenor has invested Rs 10 billion to increase its stake in the Indian unit, Telewings Communications (erstwhile Uninor), from 49 per cent to 74 per cent. With this, the ownership of Telenor?s joint venture partner in the Indian unit, Lakshdeep Investments & Finance, has reduced from 51 per cent to 26 per cent.

Viom Networks set to launch IPO

Viom Networks is planning to launch an initial public offering (IPO) to raise Rs 20 billion in the overseas capital market. The company is considering listing its shares on the New York Stock Exchange, the London Stock Exchange or/and the Singapore Exchange. It has commenced the procedural work for listing the shares and is expected to complete the process by mid-2014.

Batelco increases stake in Qualitynet (Kuwait)

Bahrain Telecommunications (Batelco) has decided to double its stake in Kuwait-based internet service provider Qualitynet. Batelco will acquire 46 per cent stake in the Kuwaiti company from Ali al-Ghanim and Sons General Trading, thereby increasing its stake to 90 per cent. Currently, Batelco holds 44 per cent stake in Qualitynet, Ali al-Ghanim and Sons General Trading holds 46 per cent, and the remaining 10 per cent is held by the National Bank of Kuwait.

 

World Bank extends credit line for Myanmar?s telecom market (Myanmar)

The World Bank?s board of executive directors has approved a $31.5 million credit line for a telecom sector reform project in Myanmar. The project aims at upgrading the country?s outdated telecom networks and providing assistance to Myanmar?s telecom ministry to create and implement new regulations and policies to drive sector growth in the country.

True Corporation lists its infrastructure fund (Thailand)

Thailand-based True Corporation has raised THB 58.1 billion through the IPO of its infrastructure fund, the True Telecommunications Growth Infrastructure Fund, which owns assets such as telecom towers and optic fibre cable networks. True Corporation offered 5.8 billion shares of the fund at a price of THB 10 per share. It intends to use the funds to reduce its debt, which stands at $3.4 billion. The Credit Suisse Group and Siam Commercial Bank PCL were the joint global coordinators for the IPO, while Bank of America Merrill Lynch and UBS AG were the joint book runners.

Facebook acquires WhatsApp for $19 billion (USA)

Facebook, Inc. has acquired  mobile messaging start-up WhatsApp in a $19 billion deal. The transaction value includes $12 billion worth of Facebook shares, $4 billion in cash and an additional $3 billion in restricted stock units to be paid to employees over the years. Venture capitalist Sequoia Capital, which invested in WhatsApp in February 2011 and led three rounds of financing, holds stake worth about $3 billion of the $19 billion valuation.

Lenovo buys Google?s mobile business (China)

China-based PC manufacturer Lenovo has signed an agreement with Google to acquire the latter?s mobile business, Motorola Mobility, for $2.91 billion. However, the majority of Motorola Mobility?s mobile patents are not a part of the acquisition deal. Lenovo intends to use Motorola Mobility?s handset portfolio to expand its operations across North and South America. Google had bought Motorola Mobility in 2012 for $12.5 billion and sold Motorola?s set-top business to Arris Group, Inc. for $2.35 billion in 2013.