Vodafone pays first tranche of its $5 billion deal to buy Essar?s stake (India)
The Vodafone Group has paid $1.9 billion, the first tranche of its $5 billion deal, to buy out Essar?s entire 33 per cent stake in Vodafone Essar. Vodafone will pay the next instalment, of $1.9 billion in November 2011. The third and final tranche, of $1.2 billion, would depend on the Reserve Bank of India?s (RBI) directives. The April 2010 RBI resolution mandates that shares held by Indian entities in private companies should be valued under the discounted cash flow method. Under this method, Essar?s 11 per cent stake (of the total 33 per cent) in Vodafone Essar is worth $1.7 billion to $1.8 billion, while the purchase option pegs it at $1.2 billion.
RCOM draws final tranche of CDB loan facility
Reliance Communications (RCOM) has drawn the third and final tranche of Rs 12 billion from the Rs 87 billion loan facility it secured from the China Development Bank (CDB). The facility has been extended to refinance the debt raised by RCOM for its 3G spectrum fee payments and for equipment imports worth Rs 27 billion from Chinese vendors. The loan facility, which is fully underwritten by CDB, is being funded by a syndicate of Chinese banks and financial institutions including CDB.
Spice Group to raise $1 billion through London listing
The Spice Group plans to list Spice Global, the holding company of its two companies, Mumbai-based Spice Mobility and Singapore-based Spice i2i, on the London Stock Exchange by March 2012. The group intends to raise $1 billion through the listing. The proceeds from the issue would be used towards the company?s business expansion in India and Singapore. The group was earlier considering listing the company on the Singapore Stock Exchange.
Bharti airtel defers $1 billion bond sale
Bharti airtel has put on hold the proposed bond sale worth $1 billion. The company has reportedly decided to do so due to the perceived weak investor appetite for the issue. The operator had appointed seven banks ? Barclays Capital, Standard Chartered, Deutsche Bank, HSBC, UBS, BNP Paribas and Credit Agricole ? to manage the issue. Bharti planned to issue the bonds from its African subsidiary, Bharti airtel International Netherlands, which acts as the holding company for the African operations the operator acquired from Zain in June 2010.
MTNL to restructure Rs 70 billion debt
Mahanagar Telephone Nigam Limited (MTNL) has initiated the process of restructuring the Rs 70 billion loan it took in 2010 for purchasing 3G and broadband wireless access spectrum. Of the total loan, the company is planning to convert Rs 30 billion into long-term debt. MTNL has already restructured Rs 35 billion of the debt by repaying Rs 5 billion and tying up with two state-owned banks for the remaining Rs 30 billion. The company is expected to convert this short-term loan into long-term debt for seven years and complete the process by July 2011. The operator will pay the interest for the first three years, and then the principal amount and the interest for the remaining four years.
Telekomunikasi Indonesia to buy back SingTel?s stake in Telkomsel (Singapore)
Telekomunikasi Indonesia is planning to buy back Singapore Telecom?s (SingTel) entire 35 per cent stake held in its mobile arm Telkomsel. The move is directed at improving the group?s profitability as the operator struggles to increase profits in a saturated and competitive domestic mobile market. The plan has been approved by the group?s shareholders and is awaiting the government?s approval.
PCCW plans to list its telecom company as business trust (Hong Kong)
Hong Kong-based telecom operator PCCW has received permission to spin off its telecom business as a business trust on the country?s stock exchange. This is a first-of-its-kind listing in Hong Kong. The proposed spin-off includes PCCW?s local telecom and data services, international telecom services, etc. After the trust listing, the firm, controlled by Richard Li Tzar-kai, will retain a proposed 55 per cent stake in the telecom business, apart from a controlling stake in the trust?s property and media business. In order to provide security to investors, Hong Kong Exchanges and Clearing is planning to ask the issuer of the trust to hold at least a 50 per cent stake.
Axis secures $1.2 billion financing (Indonesia)
The Saudi Telecom Company has stated that its Indonesian unit Axis has secured $1.2 billion to fund its expansion and growth strategies for the next five years. The financing deal, which has a tenor of seven and a half years, includes three facilities ? a $450 million Murabaha facility provided by Deutsche Bank (DB) and HSBC, and underwritten by DB and the Saudi British Bank; a $400 million facility for equipment purchases from Huawei, underwritten by CDB; and a $350 million facility for equipment purchases from Ericsson, arranged by HSBC and backed by EKN, a Swedish export credit agency.
Du signs a $220 million refinancing deal (UAE)
UAE-based telecom operator Du has signed a $220 million, three-year refinancing deal to repay a loan maturing on June 30, 2011. The National Bank of Abu Dhabi, Emirates NBD Bank and the Samba Financial Group were the lead managers for the facility, while Mashreq Bank was the co-arranger. A part of the loan will be used to repay the existing $816.77 million due at end-June 2011 and the remaining amount will be used to fund the company?s investment plans.
