Bharti Infratel to launch IPO (India)

Bharti Airtel is planning to issue an initial public offering (IPO) for its telecom tower company, Bharti Infratel, to raise Rs 40 billion-Rs 45 billion. The move would also provide an exit option to the private equity firms that had invested in Infratel. Airtel owns 86 per cent stake in the tower unit while the remainder is held by various investors including Temasek Holdings, Kohlberg Kravis Roberts & Co., Goldman Sachs, the Macquarie Group, Citigroup, the Investment Corporation of Dubai and AIF Capital. Currently, the operator is preparing the draft red herring prospectus and is expected to file the same with the Securities and Exchange Board of India by end-September 2012. It has also shortlisted six banks including Standard Chartered and JP Morgan to conduct the listing process. Bharti Infratel is planning the listing in the first half of 2013.

Altruist Technologies acquires Sweden-based Teligent Telecom

Chandigarh-based value-added services (VAS) provider Altruist Technologies Private Limited has acquired Teligent Telecom, a Sweden-based infrastructure solutions and VAS provider. The deal is valued at Rs 880 million-Rs 950 million and includes both upfront payment and earn-out portions, which will be paid depending on the achievement of revenue targets in December 2012. The deal is expected to help Altruist Technologies expand its business in developed markets across Europe, North Africa and the US. Currently, the company has a presence in Southeast Asia, the Middle East and the African continent.

Telenor settles Uninor’s loans

Norway-based telecom operator Telenor ASA, a majority stakeholder in Uninor, has settled Uninor’s bank loans worth Rs 98 billion. The move comes after the lenders declined Uninor’s request for extension of the loans. These short-term loans, which had been provided by Indian and international banks, were fully guaranteed by Telenor. Meanwhile, Uninor has asserted that although this amount will be taken as a liability on its books, Telenor will not be able to charge any interest on the amount as in the case of refinancing of loans.

Bharti Group to sell Comviva

The Bharti Group is in advanced discussions with Tech Mahindra, the IT arm of the Mahindra Group, for the sale of Bharti-owned mobile financial and VAS solutions provider Comviva Technologies. The deal has been valued at Rs 7.5 billion. Tech Mahindra is reported to have signed a non-disclosure agreement and has already completed the due diligence. However, the companies have not reached a conclusion regarding the valuation of Comviva’s future contracts. The Bharti Group holds a 50 per cent stake in Comviva, private equity firms Sequoia Capital and Cisco hold 30 per cent and 5 per cent respectively, and the balance is owned by employees.

China Telecom acquires CDMA assets from parent company (China)

China Telecom Corporation has entered into an agreement with its parent company, the China Telecom Group, to purchase the latter’s CDMA network assets. Currently, the assets under consideration are being leased by China Telecom, and include 2G as well as 3G CDMA infrastructure covering 30 provinces, municipalities and autonomous regions in China (excluding the Xizang autonomous region). The preliminary price for the acquisition has been decided at $13.346 billion. The transaction is expected to be completed by December 31, 2012, subject to certain conditions being fulfilled, including regulatory and shareholder approvals. Further, China Telecom will continue to lease certain CDMA network facilities from the parent company, which are not included in the acquisition agreement.

TeliaSonera to acquire Alem’s Wi-Max business (Kazakhstan)

TeliaSonera has entered into a $170 million deal with Kazakhstan-based Alem Communications to acquire the latter’s Wi-Max business in six cities. Besides, it will acquire spectrum in the 2.5 GHz-2.6 GHz band, which could be used to offer 4G services based on long term evolution technology. The transaction is awaiting regulatory approval.

Bakrie Telecom raises $58 million (Indonesia)

Indonesia-based Bakrie Telecom has raised IDR 557 billion ($58 million) through the sale of shares via a non pre-emptive rights offering. The non pre-emptive rights offering effectively waives the right of existing shareholders to maintain their ownership status in a given company enabling these shares to be sold to another party. Bakrie Global Ventura, a subsidiary of the Bakrie Group, was the principal buyer in the transaction. The proceeds have been partially used to refinance Bakrie Telecom’s recently matured bonds worth IDR 650 billion.

CMA approves Qtel’s acquisition of Wataniya Telecom (Kuwait)

Kuwait’s Capital Markets Authority (CMA) has given its approval to Qatar Telecom (Qtel) for acquiring a 47.5 per cent stake in Kuwait based-Wataniya Telecom. The $2.2 billion deal will increase Qtel’s holding in Wataniya from the current 52.5 per cent to 100 per cent. Qtel had approached CMA for approval regarding the acquisition towards end-June 2012.

While large-scale additional investments are the need of the hour, the sector is witnessing an opposite trend. This calls for investor-friendly policies and mechanisms that will help the sector address the issues and challenges it faces.