Bharti Telecom purchases 1.49 million shares of Airtel (India)

Bharti Telecom, the majority stakeholder in Bharti Airtel, purchased about 1.49 million shares of Airtel. The acquisition took place through four open market transactions worth  Rs 545.1 million. The purchase has increased Bharti Telecom’s stake in Airtel from 45.55 per cent to 45.58 per cent.

FIPB approves Uninor’s rights issue

The Foreign Investment Promotion Board (FIPB) has approved the Rs 82.50 billion rights issue proposal by Uninor. Uninor’s decision to go in for a rights issue was earlier stalled as its Indian partner Unitech had approached the district court in this regard. Permission for the rights issue will help the company obtain funds from international banks.

Telenor seeks to increase its holding in Unitech Wireless

Norway-based Telenor has approached the FIPB to increase its holding in its joint venture (JV), Unitech Wireless, from the existiGTL Limited, TTSL, SREISubex, Tulipng 67.25 per cent to 74 per cent. The operator has also expressed its intent to induct other resident Indian shareholders if the JV partner fails to subscribe to its Rs 82.50 billion rights issue, recently approved by the FIPB.

Consortium of banks likely to restructure GTL Limited’s debt

The consortium of 25 banks responsible for GTL’s debt restructuring is likely to streamline approximately 25 per cent of the company’s total loans worth Rs 170 billion into convertible debentures, which can be converted into equity at a later stage. Further, the lenders have sought a personal guarantee (to at least hedge their exposure) from the promoter as part of the negotiations. The banks are yet to agree on certain terms of the restructuring. The conversion of the debentures into equity is expected to take place in March 2012. Meanwhile, the banks have agreed to lower the interest rate on the loans by 2 per cent. GTL Limited is indebted to the extent of Rs 60 billion while GTL Infrastructure has taken loans worth Rs 110 billion.

TTSL and SREI look to dilute stake in Viom Networks

Tata Teleservices Limited (TTSL) and the SREI Group are in talks with private equity players to sell stake in their JV, Viom Networks. With 38,500 towers, Viom is India’s second largest telecom tower company after Indus Towers. At present, it has the largest number of reported tenants per tower. TTSL owns nearly 54 per cent in Viom. Over the past month, TTSL and the SREI Group have interacted with at least two possible investors – Sumitomo Corporation of Japan and private equity company TPG Partners.

Subex Limited plans to raise $135 million

Subex Limited has obtained board approval to raise around $135 million. It plans to raise this amount through debt or equity or a combination of the two. The fund-raising exercise is intended to meet the company’s obligation to redeem foreign currency convertible bonds of $131 million due for redemption in March 2012.

Tulip Telecom plans to raise funds from private equity firms

Tulip Telecom is in advanced talks with private equity (PE) firms to raise around $75 million. In May 2011, Tulip’s board had approved plans for raising Rs 10 billion. Since then, the company has been looking to raise capital to finance its expansion plans.

Bharti Airtel pays interim dividend to TCIL

Bharti Airtel has paid an interim dividend of Rs 117.5 million (at the rate of 15 per cent) to Telecom Consultants of India Limited (TCIL), its JV partner in Bharti Hexacom, for financial year 2011-12. While, TCIL has been demanding this payment for sometime, Bharti Airtel had denied it stating that all the profits were being ploughed back into the company to expand its operations. Bharti Airtel owns a 70 per cent stake in the JV while TCIL holds the remaining 30 per cent. Meanwhile, TCIL presented a dividend cheque of Rs 43.2 million to the government. The dividend payment is for financial year 2010-11. The government holds 100 per cent of the company’s share capital. TCIL has cumulatively paid Rs 1.76 billion as dividend to the government since its inception in 1978.

Kavveri Telecom acquires Rymsa Telecom (Spain)

Kavveri Telecom has acquired Spain-based Rymsa Telecom in a transaction worth Rs 1.37 billion. The company believes that the acquisition will increase its turnover by Rs 350 million to Rs 400 million.

PCCW raises $1.2 billion in an initial public offering (Hong Kong)

PCCW, the holding company of the Hong Kong Telecoms (HKT) Group, has raised around $1.2 billion in the initial public offering of its core telecom business, which is being spun off into a business trust and listed on the local stock market. The amount raised by the HKT Trust was below the company’s original target of $1.6 billion. Hong Kong’s offering was priced at the bottom end of its indicative range, at $0.58 per unit. The HKT Trust will become the first business trust – a hybrid of unit trusts and conventional equities – to be listed in Hong Kong.

Dialog Axiata to acquire Suntel

Sri Lanka-based Dialog Axiata has entered into a share purchase agreement to acquire 100 per cent stake in wireless and fixed line operator Suntel. Dialog will pay $33.9 million-$34.9 million for the deal, which will provide a thrust to its broadband and fixed line business. Following the deal, Dialog would integrate its broadband networks division with Suntel’s operations.