Bharti Airtel signed an agreement with ATC for tower sale in Tanzania
Bharti Airtel Limited announced that it has entered into an agreement with American Tower Corporation, through its subordinate company, Airtel Tanzania Limited, for the sale of approximately 1,350 of its communications towers in Tanzania. As per the agreement, American Tower may acquire up to approximately 100 additional sites currently in development for an additional consideration. Airtel will be the anchor tenant on the portfolio under a lease with a ten-year initial term.
Merger of SSTL with Reliance Communications
The shareholders of Sistema Shyam Teleservices Limited (SSTL) have approved the company’s proposed merger with Reliance Communications (RCOM). The deal has already been announced by the board of RCOM and bodies such as Competition Commission of India, the Rajasthan High Court, the Bombay High Court and the Securities Exchange Board of India. The two companies are now expected to approach the Department of Telecommunications for final closure.
The deal between the two operators is valued at around $690 billion and is expected to close by June 2016. As per the agreement, SSTL will pay off its existing $500 million debt before closing the deal, while RCOM will assume the liability of paying the government for SSTL’s spectrum in installments over the next 10 years. “SSTL will get around 10% stakes in the combined entity, but no board seat and no veto powers,” a person directly involved in the deal said.
Tata Communications’ deal to sell Neotel to Vodacom lapses
Tata Communications has announced that the transaction for selling majority stake in its subsidiary Neotel to South Africa-based Vodacom has lapsed due to regulatory complexities and non-fulfillment of certain conditions.
Tata Communications holds 68 per cent stake in Neotel. In May 2014, the company had signed an agreement with Vodacom for the sale of majority stake in Neotel for SAR 7 billion. Further, in December 2015, Tata Communications had announced that Neotel and Vodacom have concluded a modified transaction and the transaction documentation relating to the restructured deal have been submitted to the Competition Tribunal.
4th operator in Myanmar will arrive this year
Myanmar Technologies and Investment Corporation (MTIC) mentioned that it will be going public as soon as it acquires the requisite telecom license. This was quoted by Zaw Min Oo, member of the company’s board of directors. The government is administering the work and for the formation of the fourth operator that will include the 11 local companies, a stake by the government company and a foreign partner. The Special Purpose Vehicle, Myanmar National Telecom Holding that comprises of 11 local companies – is in the process of finalising a partner among the seven foreign players who have submitted their Expression of Interest. Two foreigner companies will be chosen, of which one will be a backup. MTIC is one of the 11 the public companies in the Special Purpose Vehicle that will be part of the fourth operator. The seven foreign companies submitted their interest include companies from the ASEAN, Europe and Africa, he said. “The priority is not only to give the 11 companies but also to the public,” said Min Oo. The companies from Myanmar will collectively have a 51 per cent stake.