IMCSL to merge with ABIPBL (India)
Idea Cellular’s board of directors has approved the proposed merger of Idea Mobile Commerce Services Limited (IMCSL) with Aditya Birla Idea Payments Bank Limited (ABIPBL). IMCSL manages the operator’s digital wallet, Idea Money. ABIPBL was formed in February 2016 as a joint venture between Idea’s promoter Aditya Birla Nuvo and Idea Cellular. On completion of the merger, ABIPBL will issue equity shares to Idea Cellular in lieu of its existing shareholding in IMCSL. Following the completion of the merger, Idea Cellular will continue to hold 49 per cent equity in ABIPBL.
Vodafone selects banks for managing its Indian IPO
Vodafone India has reportedly selected Bank of America Merrill Lynch, Kotak Investment Banking and UBS as joint global coordinators for managing its initial public offering (IPO) in India. Meanwhile, Deutsche Bank, HSBC and ICICI Securities will be the joint bookrunners. Vodafone is likely to launch the IPO in early 2017. The issue is expected to fetch the operator $2 billion-$2.5 billion.
Idea Cellular to transfer its tower infrastructure undertaking to ICISL
Idea Cellular will transfer the 7,997 telecom towers that it owns and operates across the country to its subsidiary Idea Cellular Infrastructure Services Limited (ICISL). ICISL currently offers tower infrastructure services in Bihar and Odisha. To execute this transaction, a business transfer agreement will be signed between Idea Cellular and ICISL. ICISL will issue around 10,000 equity shares to Idea Cellular in consideration for the tower infrastructure undertaking. The tower transfer to ICISL is expected to be completed within three to six months, subject to obtaining requisite regulatory approvals.
Tata Communications hives off 74 per cent stake in data centre unit to ST Telemedia
Tata Communications has entered into a definitive agreement with Singapore Technologies (ST) Telemedia to hive off stake in its data centre business. As per the agreement, the latter will acquire a 74 per cent stake in Tata Communications’ data centre business in India and Singapore through its subsidiary ST Telemedia Global Data Centre (STT GDC) for approximately $630 million. On completion of the sale, Tata Communications will continue to hold 26 per cent share in the business. The business includes 14 data centres in key cities across India and three in Singapore. With this acquisition, STT GDC’s global data centre network will strengthen its presence across four geographies, including India and China.
RJIL to raise Rs 7.5 billion through debentures
Reliance Jio Infocomm Limited (RJIL) is planning to raise Rs 7.5 billion through the issue of redeemable non-convertible debentures on a private placement basis. Earlier, in May 2015, the company had raised about Rs 45 billion from a consortium backed by the Korea Trade Insurance Corporation to buy telecom equipment from Samsung Electronics and Ace Technologies. In April 2016, the company had issued debentures of up to Rs 22.5 billion.
IFC to invest $60 million in Myanmar’s telecom tower space (Myanmar)
The International Finance Corporation (IFC) is planning to invest in Myanmar-based telecom infrastructure company Irrawaddy Green Towers (IGT). The investment will be carried out through IGT’s Singapore-incorporated owner Irrawaddy Towers Asset Holding. The planned investment is likely to include one round of up to $30 million each for equity and debt.
Mobilink-Warid merger receives approval from PTA (Pakistan)
The Pakistan Telecommunication Authority (PTA) has approved the Mobilink-Warid merger deal, subject to various conditions. As per one of the key conditions of the deal, Mobilink will accept and own all the liabilities of Warid Telecom. Further, both parties cannot reduce the total number of interconnection circuits allocated by them to other operators without PTA’s prior approval. PTA has also directed both the companies to not use interconnect capacities in a manner that may prevent other operators from accessing the subscribers of the merged entity. Mobilink and Warid are required to continue to submit their annual audited financial statements as separate entities until the amalgamation order is passed.
DRC receives Euro 52.04 million loan from AfDB (Republic of Congo)
The African Development Bank (AfDB) has approved a loan worth Euro 52.04 million to the Government of the Democratic Republic of Congo (DRC) as financial assistance for building DRC’s portion of the regional Central African Backbone (CAB) project. The loan proceeds will be used to fund the deployment of optic fibre cable (OFC) networks in DRC and enable new e-services. Currently, DRC has direct access to only one submarine OFC and has limited terrestrial optic fibre links to neighbouring countries. As part of the project, DRC will deploy 550 km of OFC, between Congo and Brazzaville, via Ouesso to the borders with Cameroon and the Central African Republic. The total cost of the project is estimated at Euro 66.56 million, part of which will be borne by DRC.
