Following are the key financial partnerships in the month of December 2012
GTL Infrastructure completes restructuring of FCCBs (India)
GTL Infrastructure Limited has completed the restructuring of its foreign currency convertible bonds (FCCBs) worth $320 million. The zero-coupon bonds have been restructured for a tenor of five years and one day. Of the $320 million, $112 million has been converted into equity at Rs 10 per share and the balance at Rs 12.66 per share. GTL Infrastructure had received approvals from the Reserve Bank of India and the Singapore Stock Exchange as well as company bondholders for the restructuring.
Bharti Infratel launches IPO
Bharti Infratel, the tower arm of Bharti Airtel, launched its Rs 45 billion initial public offering (IPO) on December 11, 2012. The issue comprised 188.9 million equity shares, which were offered to retail investors at Rs 210-Rs 240 per share. The shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange. Bharti Airtel, which has 86 per cent stake in Bharti Infratel, is not participating in the share sale. Bharti Infratel would utilise the IPO proceeds to fund its business expansion and future acquisitions.
Swipe Telecom to raise PE funds
Pune-based Swipe Telecom is planning to raise $20 million through the private equity (PE) route. The company is in talks with two Indian and one US-based firm for the deal. The proceeds will be utilised for expansion, branding and innovation activities for its tablet PCs. Swipe is also planning to enter the US and Ireland markets by end-January 2013. In the past, the company has received $10 million funding from a Pune-based investor, Mantra Ventures.
Asiacell to launch IPO in January 2013 (Iraq)
Qatar Telecom?s Iraq-based subsidiary Asiacell is set to launch its IPO on January 3, 2013 and aims to sell 25 per cent of its stake. Thereafter, it plans to get listed on the Iraq Stock Exchange (ISX) on February 3, 2013. The operator had failed to meet several earlier deadlines to list its stocks on the ISX. Under the terms of the operating licences, national mobile operators in Iraq were required to get their stocks listed on the ISX within four years of receiving concessions in 2007.
Batelco to buy CWC?s Monaco and Islands business (Bahrain)
Bahrain Telecommunications Company (Batelco) has reached an agreement with Cable & Wireless Communications (CWC) regarding the acquisition of most of the latter?s Monaco and Islands division. As per the agreement, CWC will exit from its businesses in the Maldives, Channel Islands, Isle of Man, Seychelles and Diego Garcia. The $680 million deal is subject to approval from CWC shareholders and is expected to be completed by end-March 2013. Further, CWC will divest a 25 per cent stake in Compagnie Monegasque de Communication SAM, the company through which CWC holds a majority stake in Monaco Telecom. For the remaining 75 per cent stake, CWC and Batelco have entered into option arrangements, wherein CWC can sell its stake in Monaco to Batelco for $345 million.
NTT DOCOMO sets up a subsidiary in Singapore (Singapore)
Japan-based NTT DOCOMO has set up a wholly owned subsidiary in Singapore to provide services to Japanese residents and businesses in the country. The unit, DOCOMO Singapore Pte Limited, will become operational from January 1, 2013. It will serve as a sales agent for Singapore-based StarHub, supporting Japanese speakers with sales of mobile phones, cable TV and broadband internet as well as Japanese language support for billing plans, handset use and registration. The new business unit will take over from NTT DOCOMO?s existing representative office in Singapore, which was established in 2005. As per statistics from the Embassy of Japan, Singapore has a large Japanese community with more than 24,000 Japanese citizens and nearly 1,000 Japanese companies.
Globe Telecom buys Bayan?s debt (Philippines)
Globe Telecom, a joint venture between Philippines? conglomerate the Ayala Corporation and Singapore Telecommunications (SingTel), has purchased around 92 per cent of the total outstanding debt of Bayan Telecommunications. In November 2012, Globe Telecom had offered to acquire Bayan?s debt from its creditors ahead of a move to buy out the company. It had launched a tender offer to buy 100 per cent of Bayan?s debt, including the liabilities of its subsidiary, Radio Communications, Inc. The offer was subject to approval from 70 per cent of Bayan?s senior note holders. The notes, with a value of $200 million, were originally due in 2006.
Softbank to reduce stake in eAccess to meet spectrum limits (Japan)
Japan-based Softbank Corporation is planning to reduce its stake in eAccess to less than one-third after it completes the acquisition of the operator by January 2013. The stake reduction will be carried out through an exchange of shares. The move will ensure Softbank?s adherence to the spectrum allocation guidelines laid down by the Ministry of Internal Affairs and Communications. Under the guidelines, the ministry allocates frequency to a mobile phone service provider on the condition that the company does not have affiliates in which it holds over a third of shares. Currently, both Softbank and eAccess hold their own frequencies, and will be allowed to continue operations if Softbank reduces its share in its new subsidiary to below 33.33 per cent.
