Ukrainian government sells Ukrtelecom for $1.3 bn
The Ukrainian government has sold the state-owned telecoms network, Ukrtelecom for US$1.3 billion to an Austrian private equity firm.
The sale is the privatization deal made so far by the government of President Viktor Yanukovych.
Earlier, Peter Goldscheider, one of EPIC’s managing partners, commented that this is a long-term investment and that his Vienna-based privatization and investment company potentially plans to attract strategic investors and launch the initial public offering (IPO). It has been also reported that along with the price of the agreement, the buyer adopted responsibility to repay Ukrtelecom’s loans (approx. US$160 million) and carry out a number of investment commitments.
As of today, Ukrtelecom controls about 80% of Ukraine’s fixed-line market and has a small mobile business Utel providing services to more than 630,000 customers. Currently, Ukrtelecom possesses a license to provide 3G services. In addition, Ukrtelecom has created the most powerful high-capacity national data trunk network in Ukraine based on the modern DWDM technology, with 4 GBits/sec transfer capacity.
Tunisia suspend plans to launch IPO
The communications minister of Tunisia states that it has suspended plans to launch an initial public offering for state-owned Tunisie Telecom after protests against the planned sale.
According to Secretary of State for Communication Technologies Sami Zaoui, a final decision would be taken in consultation with Tunisia’s strategic partners within days over whether to go ahead with the IPO.
Tunisia’s government holds a 65% stake in Tunisie Telecom, with the rest held jointly by Dubai’s TECOM Investments and Dubai Investment Group. It had planned to list the company on both Tunis and Paris stock exchanges in what would have been the first offering by a Tunisian company on a European bourse.
Tunisia has had two changes of government since former president Zine al-Abdine Ben Ali was driven out by popular revolt on Jan. 14. Many officials have been replaced, leaving plans for the IPO in limbo.
Vodafone to get Qatar’s second fixed-line license
www.WirelessFederation.com/news: Gulf Arab’s second fixed-line phone license has been awarded to the country’s second largest telecoms firm by market value, Vodafone Qatar. The company was offered the fixed line license in September 2008. The approval by Qatar’s regulator to award the license to the operator was subject to change pending approval at its extraordinary general meeting.
A delay due to complications with the fixed-line consortium’s shareholding structure has already dogged Vodafone’s final approval for the license. According to Grahame Maher, Vodafone Qatar’s chief executive, the company is waiting for the final approval of the shareholding structure that the government wants to run and Vodafone Qatar would probably hold a stake of between 25% and 35% in the new venture.
A 50-50 joint venture between U.K. telecom giant Vodafone Group PLC and the Qatar Foundation, Vodafone Qatar is listed on the Doha Bourse in July last year after raising 3.38 billion Qatari riyals ($928 million) in a 40% share sale.
The sale has been described as the biggest initial public offering last year in the Middle East and North Africa region.
Orascom Bangladesh raises $102m in a corporate deal
www.WirelessFederation.com/news: $102 million has been raised by Orascom Telecom Bangladesh, a subsidiary of Egypt’s Orascom Telecom, through Bangladesh’s biggest corporate bond deal, thus smashing the previous record of Grameenphone, just after four months. Orascom’s biggest rival in Bangladesh sold shares for $71m in the country’s largest initial public offering.
The deal though small in global terms is still another sign that the country’s capital markets are flickering back into life. Investor’s confidence in Bangladesh is also reflected through the deal. According to Shams Zaman, of Citi Bangladesh, which arranged the deal, investor confidence is coming back and Orascom bond shows that it’s possible to raise sizable amounts of financing from the local market.
Bangladesh is undergoing a heated competition as in January, Bharti Airtel, the Indian telecoms group, bought 70 per cent of Bangladesh’s Warid Telecom for an initial investment of $300m. Grameenphone, Bangladesh’s biggest telecoms company also raised $71m from local retail investors and a further $70m from selling shares to local institutions.
MobiFone reports 52% rise in revenue (Vietnam)
www.WirelessFederation.com/news: 52 % year-on-year rise in revenue in the year ended December 31, 2009, has been reported by Vietnam’s second largest wireless operator by subscribers, MobiFone, reaching VND27.4 trillion (USD1.48 billion).
However, pre-tax profit of the company fell 3.4% compared to 2008 to VND5.6 trillion. The net income of the company is not yet declared. The company is targeting revenue of VND34 trillion in 2010. According to the MobiFone, it is quickly preparing for the privatization process this year in an attempt to improve competitiveness.
It was revealed in 2008 that that in an initial public offering (IPO), 15% tranche would be sold to a strategic investor and 15% to the public. Even after IPO, 19% of the stake might also be sold reducing state-owned Vietnam Posts and Telecommunications’ (VNPT’s) stake to 51%.
Russian telco Svyazinvest aims for IPO in April 2011
www.WirelessFederation.com/news: The structural reorganization of Russia’s state-run telecoms conglomerate Svyazinvest is scheduled to be completed by April 2011. The company also hopes to hold an initial public offering (IPO) to offload around 25% of the company.
Currently, Svyazinvest is combining long-distance operator Rostelecom with its seven ‘mega-regional’ operators to create a single, national network. The seven operators include Center Telecom, North-West Telecom, Volga Telecom, South Telecom, Uralsvyazinform, Siberia Telecom (Sibirtelecom) and Far East Telecom (Dalnevostochnaya)
Polkomtel to postpone its IPO (Poland)
www.WirelessFederation.com/news: Polkomtel may change the date of its initial public offering (IPO) and the floatation is expected to shift until Q3 while it was supposed to take place in Q1 2010.
Refiner and petrol retailer PKN Orlen (24.39%), copper and silver producer KGHM (24.39%) and Electricity Company Polska Grupa Energetyczna (PGE, 21.85%) are the three largest shareholders of the company.
One of the shareholders Orlen announced last year that it needs additional funds and therefore wants Polkomtel to be floated.
Bharti Airtel to float one of their Tower subsidiaries (India)
www.WirelessFederation.com/news: A stock market floatation of tower holding subsidiaries, the wholly owned Bharti Infratel and its smaller joint-venture with Vodafone and Idea Cellular, Indus Towers, has been mulled by India’s Bharti Airtel.
Around 100,000 towers are owned by Bharti Infratel while Indus has around 70,000 towers. 42% in Indus Towers is owned by Bharti Airtel and Vodafone each while remaining 16% is owned by Idea Cellular. Looking at the financial conditions of Infratel or Indus, Bharti may issue initial public offering in the next fiscal.
In 2007, Reliance Communications too sold a 5 percent stake in it towers business with an equity valuation of US$6.75 billion. A merged GSM tower business with 70,000 towers of RTIl could be worth around US$33 billion. However, it has to be kept in mind that RTIL is a whole operations business, whereas the Indus Towers is solely based on the passive infrastructure and does not include any of the RAN or antenna facilities.
IPO proposals approved by SSTL
www.WirelessFederation.com/news: Sistema Shyam TeleServices (SSTL), an Indian mobile network operator under MTS India banner, has been given an in-principle approval to launch an initial public offering (IPO) by its board.
According to Vsevolod Rozanov, president and CEO of SSTL, the proceedings to list the company on the local bourses have been initiated and the company will now have to work out the details of the IPO such as the amount of stake to be divested amongst other issues. Even after getting the permission of the board, the listing will happen depending on the market conditions and the market does not look right for an IPO.
74% of the telco is owned by Russian services conglomerate Sistema and it was revealed in September 2009 that the Russian government was preparing to acquire a 20% stake in the cellco from Sistema for approximately USD680 million.
SingTel plans to float Optus share as Australian IPO
www.WirelessFederation.com/news: With an aim to raise about A$4 billion, 25% stake of Australian unit Optus is planned to be sold by Singapore Telecommunications Ltd through an initial public offering in Australia. Southeast Asia’s largest telecommunications firm by revenue, Singtel, acquired Optus in 2001 through a bid valuing the Australian telecommunications firm at A$17 billion.
Though Optus is a cash cow for SingTel, 23.0% loss was incurred in the second fiscal quarter compared with 23.2% at the same time a year earlier. The company revenue was 27.8% in the fourth quarter of the previous fiscal year ended March 31.
The pressure will further intensify with the entry of Vodafone Hutchison in the Australian market. In order to deal with the rising competition, the operator is set to create a cash war-chest for acquisitions and expansion in markets outside Australia and Singapore.
According to Singtel, it is evaluating investment opportunities in China and is also interested in taking a stake in Vietnam’s MobiFone.
