Vodafone to sell 9.5 per cent stake to Aditya Birla Group post merger of services (India)
Vodafone India has agreed to sell an additional 9.5 per cent stake to the Aditya Birla Group after the two companies merge their telecom operations in the country. The additional stake would be sold at Rs 130 per share. As per the composite scheme of amalgamation between Vodafone and Idea Cellular filed with the Bombay Stock Exchange, the merged entity will be under the joint control of the two firms and will be governed by the shareholders’ agreement. Vodafone will hold 50 per cent stake in the merged entity, while the Aditya Birla Group will hold 21 per cent stake. On completion of the merger, Vodafone will transfer 4.9 per cent shares of the merged entity to the Aditya Birla Group for Rs 38.74 billion, increasing the latter’s share in the merged entity to 26 per cent. This will reduce Vodafone India’s shareholding to 45.1 per cent. The remaining 28.9 per cent stake in the merged entity will be held by other shareholders.
IDFC Alternatives buys 33 per cent stake in Ascend Telecom
IDFC Alternatives, the private equity (PE) arm of the IDFC Group, has bought a 33 per cent stake in New Silk Route-backed telecom tower company, Ascend Telecom Infrastructure Private Limited. As a part of the deal, the PE firm has bought Ascend Telecom’s shares worth Rs 3.65 billion and convertible debentures worth Rs 2.2 billion. Under the terms of agreement, IDFC Bank will refinance Ascend Telecom’s loans worth Rs 6.2 billion.
Airtel sells 10.3 per cent stake in Bharti Infratel for Rs 61.94 billion
Bharti Airtel has completed the secondary sale of a 10.3 per cent stake in its subsidiary, Bharti Infratel Limited, to a consortium of funds including PE firm KKR and the Canada Pension Plan Investments Board (CPPIB). The sale of over 190 million shares of Airtel in its subsidiary has been completed for Rs 61.94 billion. Bharti Airtel reportedly plans to use the proceeds to reduce its debt. Following the closure of the transaction, Bharti Airtel’s equity holding in Bharti Infratel stands at 61.7 per cent while that of KKR and CPPIB stands at 10.3 per cent. This transaction is KKR’s second investment in Bharti Infratel, the first being during the period 2008-2015.
Airtel completes sale of 11.32 per cent stake in Bharti Infratel to Nettle Infrastructure
Bharti Airtel has completed the sale of an 11.32 per cent stake in its mobile tower arm, Bharti Infratel, to its wholly owned subsidiary, Nettle Infrastructure. According to the operator, the inter-se transfer of shares has been completed for Rs 68.06 billion. Following the closure of the transaction, Bharti Airtel’s equity holding in Bharti Infratel stands at 50.33 per cent while that of Nettle Infrastructure stands at 11.32 per cent. The remaining 38.35 per cent stake in the tower company is held by the public as well as other shareholders.
NTT Communications receives FIPB approval to own 100 per cent stake in Netmagic
Japan-based NTT Communications has received clearance from the Foreign Investment Promotion Board (FIPB) to increase its stake in Mumbai-based Netmagic Solutions from the current 81.63 per cent to 100 per cent. The transaction is worth Rs 5.33 billion.
Ooredoo Maldives to launch IPO (Maldives)
Ooredoo Maldives plans to soon launch its initial public offering (IPO) and get 40 per cent of its shares listed on the Maldives Stock Exchange. It will offer 22.17 million issued ordinary shares (representing 15 per cent stake in the company) to Maldivian and international institutional investors, as well as retail investors, at $1.9 per share.
KWAP buys stake in edotco for $100 million (Malaysia)
Malaysia’s retirement and pension fund Kumpulan Wang Persaraan (KWAP) has acquired 5.4 per cent stake in edotco for $100 million. Edotco, a wholly owned subsidiary of the Axiata Group Berhad, had raised $600 million through a private equity placement from sovereign wealth fund Khazanah Nasional Bhd and the Innovation Network Corporation of Japan (INCJ) in December 2016. Khazanah and INCJ hold 10.7 per cent and 21.5 per cent stakes respectively in edotco, while the Axiata Group holds the remaining 62.4 per cent. With the latest placement, edotco has raised $700 million, of which about $200 million will go towards repaying Axiata’s debt of RM 22.3 billion and the remaining will be used for edotco’s expansion.
Econet’s rights issue undersubscribed (Zimbabwe)
Econet Wireless Zimbabwe’s $130 million rights offer was undersubscribed with about 25 per cent of the shares on offer remaining unsubscribed. Over 1.3 billion shares and debentures (including treasury shares) were on offer, of which only 74.6 per cent were subscribed to. The unsubscribed shares and debentures were allocated to underwriter and anchor shareholder Econet Wireless Global. As a result, Econet Wireless Global’s controlling stake in Econet Wireless Zimbabwe has increased to from 30 per cent to about 40 per cent.
