Idea Cellular to raise Rs 32.5 billion from promoters (India)
The board of Idea Cellular has approved a proposal to raise Rs 32.5 billion through the issue of preference shares to the promoters. As per Idea, approximately 326.6 million preference shares will be issued to the promoters at Rs 99.50 per share. This will increase the share of promoters to 47.2 per cent from 42.4 per cent. In addition, the board constituted a committee comprising board members to evaluate potential methods to raise Rs 35 billion through different options such as preference shares, qualified institutional placements and a rights issue.
RJIL to raise debt of up to $2.2 billion to fund RCOM deal
Reliance Jio Infocomm Limited (RJIL) will raise up to $2.2 billion in foreign currency debt to fund the purchase of Reliance Communications’ (RCOM) wireless assets. While RJIL has not disclosed the value of its transaction with RCOM, the deal is expected to be funded through a mix of debt and internal accruals.
TTSL receives bids worth $1 billion for its fibre network
A set of Tata Group executives have placed a bid worth $1 billion for Tata Teleservices Limited’s (TTSL) enterprise business. They were backed by a consortium led by TPG Capital and a large sovereign pension fund. The bid for the fibre network assets of TTSL includes 125,000 route km of fibre network. This will mark the first such management buyout in the group, which is in the process of shedding its money-losing businesses.
Merrill Lynch subsidiary offloads around 1 per cent stake in Bharti Airtel
Merrill Lynch’s subsidiary Merrill Lynch Markets Singapore Pte Limited has offloaded shares worth Rs 19.31 billion in Bharti Airtel through an open market transaction. The company sold 38.7 million shares at an average price of Rs 499.1 per share, amounting to a 0.97 per cent stake in Bharti Airtel. The shares were bought by SRS Partners (Cayman) LLC. At the end of the quarter ended December 2017, Merrill Lynch held 50.9 million shares of Airtel.
Route Mobile files draft IPO prospectus
Route Mobile Limited has filed the draft red herring prospectus for its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). According to the draft prospectus, the share sale will include a fresh issue worth Rs 3.5 billion, while the promoters will offer 6.5 million shares in an offer for sale. The share sale is expected to be valued at around Rs 6 billion. The company is also considering a pre-IPO placement of Rs 1.25 billion. The proceeds will be utilised to repay debt, purchase a business process outsourcing centre and meet general corporate expenses.
Airtel receives regulatory approval to acquire Tigo Rwanda (Rwanda)
Bharti Airtel has received approval for acquiring 100 per cent stake in Millicom International Cellular’s subsidiary, Tigo Rwanda. Post the acquisition, only two telecom operators will be operating in Rwanda. The combined entity will be the largest in the country in subscriber terms with approximately 5.9 million subscribers.
AfDB grants Euro 143 million loan to Tunisia (Tunisia)
The African Development Bank (AfDB) has granted loans aggregating approximately Euro 143 million to the Tunisian government. The loans have been granted for the implementation of the government’s National Strategic Plan – Digital Tunisia 2020 – and to support the development of technical skills. Digital Tunisia 2020 aims to bridge the digital divide, establish e-government services, provide assistance for start-ups and promote socio-economic development through the deployment of information and communications technology and infrastructure.
Uganda writes off UGX 200 billion of UTL’s debt (Uganda)
The Government of Uganda has decided to write off Uganda Telecom Limited’s (UTL) debt worth UGX 200 billion ($91.3 million). The state-owned fixed line operator was placed under receivership 2017 after accumulating debt of UGX 900 billion. Reportedly, UTL owes UGX 58 billion to the Uganda Revenue Authority, UGX 22 billion to Uganda Communications and UGX 16 billion to the National Social Security Fund. Other creditors include the National Forestry Authority; equipment vendors like Huawei and Nokia; and operators including MTN and Total. The government is looking for an investment partner to take over UTL.
TANMIA to acquire 32 per cent stake in Awasr (Oman)
The Oman National Investments Development Company (TANMIA) has finalised a deal to acquire a 32 per cent stake in optic fibre service provider Awasr. It will acquire the stake through a combination of equity purchase from the current owners and capital infusion. The move will enable Awasr to become a major player in Oman’s telecom sector.
VIVA Bahrain to acquire Menatelecom (Bahrain)
VIVA Bahrain has signed an agreement with Kuwait Finance House to acquire the latter’s 100 per cent stake in internet service provider, Menatelecom. The move is expected to enhance VIVA’s position in both the consumer broadband and enterprise markets.
