Vodafone Plc to increase stake in Indian business (India)

UK-based operator Vodafone Plc is reportedly planning to increase its stake in Vodafone India. At present, Vodafone Plc, Piramal Healthcare and Analjit Singh own 74 per cent, 11 per cent and 6 per cent stake respectively in Vodafone India. The remaining stake is held by private investors. Vodafone Plc has stated that it would invest over $2 billion in acquiring stake in its Indian subsidiary. The decision to increase stake comes after the Indian government permitted 100 per cent foreign direct investment in the telecom sector.

 Tata Group and Srei to divest stake in Viom Networks

The Tata Group and Srei Infrastructure are planning to divest their respective stake in the tower company Viom Networks. Both firms are reportedly in advanced discussions with private equity players and tower companies for the stake sale. Currently, the Tata Group and Srei Infrastructure own 54 per cent and 18 per cent stake respectively in Viom Networks while the remaining is held by IDFC Private Equity, SBI Macquarie, Oman Investment Fund and GIC of Singapore. Viom Networks is planning to appoint investment banks Credit Suisse and Citi as advisers for the stake sale.

 Bharti Airtel to sell data centre and managed services business

Bharti Airtel has received the shareholders’ approval for the sale of its data centre and managed services business to its subsidiary Nxtra Data for Rs 1.77 billion. The value of the transaction has been calculated on the basis of the enterprise value of the business after deducting its liabilities. Bharti Airtel currently owns two data centres in Noida, and one each in Chennai, Bengaluru, Pune, Bhubaneswar and Mumbai.

Oman government to sell stake in Omantel (Oman)

The Oman government is planning to sell 19 per cent stake, valued at OMR 227 million, in PTO Oman Telecommunications Company (Omantel) through a public offering. The government currently owns 70 per cent stake in Omantel and the remaining is held by the public. In 2008, the government had to cancel its plan to divest 25 per cent stake owing to market volatility and adverse economic conditions. The country’s financial market regulator Capital Market Authority will determine the terms and conditions as well as the share price after the government completes the procedures to float shares and appoint a consultant.

 Tata Communications to offload stake in Neotel to Vodacom (South Africa)

VSNL SNOSPV Pte, a subsidiary of Tata Communications, is planning to sell its 67 per cent stake in Neotel to  Vodafone’s South African subsidiary Vodacom. The stake is estimated to be valued at $500 million-$600 million. The stake sale would help Tata Communications pare its net debt, which currently stands at Rs 120 billion. Neotel’s telecom assets in South Africa comprise approximately 15,000 km of optical fibre, capacity in five submarine cable systems and wireless spectrum (5 MHz in the 1800 MHz band, 12 MHz in the 800 MHz band and 28 MHz in the 3.5 GHz band).

 MainOne Cable secures $100 million loan (Nigeria)

Nigeria-based submarine cable owner MainOne Cable has secured a $100 million loan from a consortium of banks including Standard Chartered Bank, Skye Bank, First Bank of Nigeria and First City Monument Bank. The proceeds will be used to fund the expansion of its terrestrial fibre networks and data centre operations in Nigeria and West Africa.

 Tunisiana secures TND 220 million syndicate loan (Tunisia)

Qatar-based Ooredoo’s subsidiary Tunisiana has secured a five-year syndicate loan of TND 220 million from the Arab Banking Corporation. The proceeds will be used to finance the expansion and enhancement of its 3G and fixed networks. The bank acted as the sole lead arranger and facility agent.

 STC and Maxis Communications to sell 95 per cent stake in Axis (Indonesia)

STC and Maxis Communications have entered into a conditional agreement with Indonesia-based operator XL Axiata for the sale of 95 per cent stake in PT Axis Telekom Indonesia (Axis). STC and Maxis Communications have appointed US-based investment bank Lazard for providing advisory services on the deal.

 Softbank Corporation secures a syndicate loan of JPY 1.98 trillion (Japan)

Japan-based operator Softbank Corporation has secured a syndicate loan of JPY 1.98 trillion from 19 banks including Mizuho Bank, the Sumitomo Mitsui Banking Corporation, the Bank of Tokyo-Mitsubishi UFJ, Deutsche Bank AG and Credit Agricole CIB. The funds will be used to refinance the one-year bridge loan taken for the acquisition of US-based operator Sprint Nextel and also to pare debt. Softbank Mobile and Softbank Telecom Corporation provided the guarantee for the credit facility. The loan has to be repaid in two instalments, with the first repayment worth JPY 1.1 trillion due on September 13, 2018. The remaining amount needs to be repaid by September 14, 2020.