MTNL raises Rs 10.05 billion through bond sale (India)

Mahanagar Telephone Nigam Limited (MTNL) has raised Rs 10.05 billion through the sale of 10-year sovereign-guaranteed bonds. The operator will use the proceeds from the sale to pay off its debt and fund its planned capital expenditure. MTNL had appointed Karvy Computer Share Private Limited as the registrar and share transfer agent, SBI CAP Trustee Limited as the trustee, and CARE and CRISIL as credit rating agencies to oversee the bond sale. The operator intends to raise another Rs 20 billion over the next few months. Earlier, on March 25, 2013, it had sought the approval of its board of directors to raise Rs 30 billion from the bond market.

Reliance Globalcom to sell 80 per cent stake to Batelco

Reliance Globalcom, the submarine cable unit of Reliance Communications (RCOM), is planning to sell 80 per cent stake to the Bahrain Telecommunications Company for Rs 60 billion. The deal is expected to be completed by May 2013. The proceeds from the stake sale will be used for curtailing RCOM’s debt, which stood at Rs 373.6 billion as of December 2012. Reliance Globalcom provides fibre connectivity between India and Europe through multiple cable landing stations.

Airtel’s Netherlands subsidiary issues fixed-rate bonds

Bharti Airtel International (Netherlands), a subsidiary of Bharti Airtel, has raised $500 million through the issue of fixed-rate bonds in the international market. The bonds have been issued at a price of Rs 100.625 and will have a yield of 5.44 per cent. Airtel intends to use the proceeds from the bond sale to pay off debt and fund capital expenditure. Barclays, BNP, Citigroup, Deutsche Bank, HSBC, Standard Chartered Bank and UBS were the bookrunners and lead managers for the bond sale. About 50 per cent of the issue was subscribed to by investors in the US, 32 per cent by investors in Europe and the remaining by Asian investors. Earlier, in March 2013, the operator had raised $1 billion through the sale of 10-year bonds.

Piramal Group to offload stake in Vodafone India

The Piramal Group is planning to offload its 11 per cent stake in Vodafone India over the next two to three years. It had bought 5.5 per cent stake for Rs 28.93 billion in August 2011 while another 5.5 per cent was purchased for Rs 30.07 billion in February 2012. The group had decided to invest in Vodafone for a short term due to the latter’s strong growth prospects.

Bharti Airtel Nigeria acquires stake in Airtel Networks Limited Nigeria (Nigeria)

Bharti Airtel Nigeria B.V., a wholly owned subsidiary of Bharti Airtel, has acquired 13.36 per cent stake in Airtel Networks Limited Nigeria. With this, Bharti Airtel Nigeria’s stake in the company has increased to 79.06 per cent.

VelaTel acquires China Motion Telecom for $6.4 million (Hong Kong)

US-based VelaTel Global Communications, which has operations in Hong Kong, China, Croatia, Montenegro and Peru, has acquired 100 per cent stake in Hong Kong-based China Motion Telecom for $6.4 million. Of the total amount, $1.6 million was paid in cash while the balance will be paid in the form of promissory notes within six months. China Motion Telecom, in partnership with mobile operators in the Greater China region, will provide wireless services to retail customers using its own billing support systems, customer service and sales personnel. China Motion Telecom is a mobile virtual network operator that has 100,000 subscribers in Hong Kong.

Hutchison plans to acquire stake in Telecom Italia (Hong Kong)

Hong Kong-based Hutchison Whampoa is planning to acquire a 29.9 per cent stake in Telecom Italia. Hutchison has proposed to offer transfer of operations and assets of its local telecom subsidiary 3 Italia, which is valued at Euro 1.5 billion-Euro 2 billion, to Telecom Italia in return for the stake. The deal would, however, require approval from the antitrust authorities as the merged entity would have a market share of 46 per cent.

KT acquires 100 per cent stake in DTV Kazakhstan)

Kazakhtelecom (KT) has acquired Astana-based cable company Digital TV (DTV). The deal value has not been disclosed. DTV offers broadband, voice telephony and TV services over its legacy cable networks. The cable company’s operational footprint encompasses 10 major cities, including Almaty, Aktau, Aktobe, Pavlodar, Taraz and Ust-Kamenogorsk. DTV’s joint venture (JV) with Wi-Max operator Alem Communications concluded in December 2012. Alem Communications had paid $30.3 million for the JV in March 2009.

Globe Telecom secures $120 million loan (Philippines)

Philippines-based operator Globe Telecom has secured a $120 million loan from the Metropolitan Bank & Trust Company. The operator plans to use the loan proceeds to partially fund the expansion of its network across the country, which is expected to cost about $800 million. The funds will also be invested in fixed line operations, international cable facilities and IT infrastructure. This credit facility follows a similar loan deal with the Bank of Tokyo-Mitsubishi for $75 million.