6th July 2007
AIG-Newbridge consortium considering sale of stake in Hanaro
The AIG-Newbridge consortium has approached over 10 overseas investors, including private equity funds and telecommunications companies, for the possible sale of its stake in Hanaro Telecom, according to a report by Thomson Financial. The report cited AT&T Inc, NTT DoCoMo and Singapore Telecom (SingTel) as potential purchasers of the stake.
The AIG-Newbridge consortium acquired its stake in Hanaro in 2003 for US$500 million. At the end of 2006, its stake in the South Korean operator stood at 39.36%.
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6th July 2007
LOUNET accepts merger agreement with Elisa
LOUNET Oy and the Board of Elisa Corporation have accepted a merger plan according to which LOUNET will merge with Elisa through the absorption process referred to in the Finnish Companies Act. Prior to the merger, Elisa Group owned 80.51% of LOUNET.
According to the merger plan, LOUNET shareholders will receive a merger consideration consisting of new Elisa shares. 0.07 Elisa shares will be given in exchange for each LOUNET share (for one LOUNET share certificate, 70 Elisa shares will be given). The General Meeting of LOUNET has also decided to distribute an extra dividend, the amount of which is €150 for each LOUNET share certificate.
The merger shall take effect once the execution of the merger is registered in the trade register. The estimated registration date of the merger is September 30, 2007. The merger consideration shall be paid after the merger has been registered. No merger consideration shall be paid for the 16,148,000 LOUNET shares owned by Elisa. There are a total of 3,909,000 shares owned by shareholders other than Elisa (corresponds to 3,909 LOUNET share certificates). Consequently, an estimated 273,630 new Elisa shares will be given as merger consideration, which represents approximately 0.17% of the current number of Elisa shares.
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6th July 2007
Thomson and Nokia Siemens Networks to co-operate to offer 3G femto cell home access solution
Thomson and Nokia Siemens Networks have announced their collaboration in developing a pioneering 3G femto cell home access solution.
Femto cells are small cellular access points which provide enhanced coverage specifically in residential environments and enable operators to provide fixed-mobile convergence services and others, such as IPTV. Thomson's femto cell-enabled residential gateway, coupled with the 3G Femto Home Access network solution from Nokia Siemens Networks - incorporating the new network element, the Femto Gateway, launched earlier this week – will allow operators to seamlessly deliver compelling 3G multimedia services, such as music downloads and video available in the home on any WCDMA 3G handset, with unrivalled quality of service, network security, and manageability.
Trials of the 3G Femto Home Access solution, including Thomson's residential gateway, will start at the beginning of 2008, with commercial deployments planned for the third quarter of 2008.
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5th July 2007
Alcatel Shanghai Bell and Datang Mobile to expand China Netcom’s TD-SCDMA trial network in Qingdao
Alcatel-Lucent’s Chinese flagship company, Alcatel Shanghai Bell Co Ltd, and Datang Mobile Communications Equipment Co Ltd have announced that they have been tasked to deploy half of the TD-SCDMA expansion project China Network Communications Group Corp (China Netcom) is launching in the coastal city of Qingdao, Shandong Province.
Under the project, Alcatel Shanghai Bell and Datang will provide China Netcom with core and radio equipment to expand the TD-SCDMA network. In addition, Alcatel Shanghai Bell will provide China Netcom with intelligent network (IN) and streaming media service platforms. All macro node B and distributed node B base station equipment will be manufactured by Alcatel Shanghai Bell. Upon completion of the project, China Netcom will be able to provide a broad suite of advanced 3G services to subscribers in central business districts, government, tourist locations and sites related to the 2008 Olympic Games.
TD-SCDMA, initially developed by Datang Mobile, is officially recognised as an international standard for 3G mobile communications. Alcatel Shanghai Bell has made a long-term commitment to the development and promotion of TD-SCDMA within China and worldwide. In 2004, Alcatel Shanghai Bell entered into a strategic partnership with Datang Mobile to further the development of TD-SCDMA. In April 2007, Alcatel Shanghai Bell and Datang Mobile jointly announced their success in China Mobile’s TD-SCDMA trial network expansion in the cities of Shanghai and Guanghzou in China.
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5th July 2007
Kenyan government seeks advisers for Safaricom IPO
The Kenyan government is reported to have begun the process of selling a stake in cellular operator, Safaricom. According to Reuters, the government is seeking professional advisers for an initial public offering (IPO) of a 25% stake in Safaricom.
The company, which posted a Sch17.2 billion (approximately US$258.6 million) pretax profits in the year to March 31, is a joint venture between the Kenyan government (60%) and Vodafone Group plc (35%). The remaining 5% is owned by local investment group, Mobitelea Ventures.
"The government wishes to offer to the public 25 percent of Safaricom shares through an IPO on the Nairobi Stock Exchange under the ongoing privatisation programme," a newspaper advertisement said.
The government is seeking services such as lead transaction adviser and lead sponsoring broker. It currently owns 60 percent of the telecoms firm that has about 6.8 million subscribers.
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5th July 2007
Sweden: PTS issues invitation for wireless broadband auction
Post- och telestyrelsen (PTS) is inviting all interested parties to register for an auction this autumn to assign licences in the 3.6-3.8GHz band. The last date for registration is September 10, 2007.
PTS plans to assign 1,160 licences in a web-based auction this November. To participate in the auction one has to register and pay a deposit. Last date for registration and payment of deposit is September 10.
There are four licences per Swedish municipality; two FDD licences of 2x20MHz each and two TDD licences of 40MHz each. These licences are technology and service-neutral and do not contain any rollout obligations.
The purpose of this assignment is to create opportunities for operators to build broadband networks, to increase supply and competition in the broadband market. The long-term objective is improved access to broadband services for users in Sweden.
In June 2006, PTS issued an invitation to accept applications for municipality-based licences. When the application period expired in August 2006, the number of applications exceeded the number of licences available in all municipalities. Consequently, no licences could be assigned immediately. PTS decided, in accordance with PTS’ spectrum policy, to auction the licences to the highest bidders.
Further information: Joakim Persson, Project Manager. Tel: 00 46 705 73 75 72. Further information: www.pts.se.
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5th July 2007
Alcatel-Lucent becomes Synterra’s strategic partner to deploy Russia’s first commercial Universal WiMAX networks
Alcatel-Lucent and Syntegra, a national telecommunications service provider, have announced a strategic partnership to deploy Russia’s first Universal WiMAX networks. The project will be conducted in co-operation with regional telecommunications operators to provide WiMAX access throughout the country. Deployments will cover many towns and cities with an average population of 100,000 inhabitants. First regional WiMAX networks are expected be operational in the fourth quarter of 2007. Synterra – which holds a national licence – intends to partner with operators in order to cover more than 1,000 Russian cities and towns by the end of 2008.
Alcatel–Lucent was the winner of the tender announced by Synterra in May for the delivery of WiMAX infrastructure – based on the latest IEEE 802.16e-2005 standards (also called Rev-e). The new networks will be deployed by regional operators in the 2.5GHz spectrum band.
Alcatel-Lucent’s Universal WiMAX solution is designed to enable rapid implementation of VoIP and broadband services, such as mobile data, video streaming and virtual private network (VPN) access in fixed, nomadic and mobile environments.
The Synterra Group includes Synterra, RTComm.RU, Global Teleport, Satcomline and a number of regional operators which have been functioning since 1992. The companies are licensed to deliver local and long-haul telephony services in 22 Russian regions. They have licences to provide data communications and connectivity services in the whole Russian territory. Through its owns fibre network, the group controls about 45% of the Russian Internet access. It can deliver communications services to all Russian cities and towns, including those in remote and hardly accessible areas (via VSAT).
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4th July 2007
ictQATAR prequalifies 12 companies for second mobile licence
The Supreme Council for Information and Communications Technology (ictQATAR) has announced that 12 companies have demonstrated the capabilities to pre-qualify for the second mobile licence application process in Qatar.
From April 23 until May 27, 2007, ictQATAR conducted its mobile pre-qualification process. A total of 17 applications were received from registered candidates. After an assessment of each application in accordance with the terms and conditions of the pre-qualification process, the following candidates were pre-qualified: the ACE Consortium (Airtel); the Argos Consortium (Verizon Wireless); AT&T Inc; Bahrain Telecommunications Company (BATELCO); Digicel Group; Emirates Telecommunications Corp (Etisalat); Jordan Telecommunications Company (JTC); Mobile Telecommunications Company (MTC); Orascom Telecom; the QUIC Consortium (Oman Telecommunications Company (OmanTel) and Belgacom); Reliance Telecom; and, Vodafone Group plc.
These candidates have been invited to participate in the final process to award the second mobile licence. Through a final Mobile Application Process (MAP), all 12 will be assessed against criteria addressing eligibility, including depth of expertise, industry knowledge, financial security and operator commitments. ictQATAR expects to award the second mobile licence in October 2007.
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4th July 2007
SK Telecom and EarthLink to increase investment in Helio ... SK abandons acquisition of stake in Advanced Digital Chips
SK Telecom has announced that it plans to make an additional investment of up to US$100 million in its struggling US mobile telecommunications venture with EarthLink Inc, known as Helio, in the second half of 2007, according to reports. The timing and the exact amount of the investment have not been set, but EarthLink would also make the same amount of investment, according to SK Telecom.
According to a report by the Financial Times (FT), Helio reported a US$192 million loss last year due to stiff competition in the US wireless market. SK Telecom said earlier this year that losses at the US operations were expected to widen to US$330 million-US$360 million this year.
Helio had attracted 70,000 subscribers by the end of 2006 after its launch in May and Kim Shin-bae, Company President, expects the number of US subscribers to nearly treble to 200,000 in 2007.
According to the FT, in a separate announcement, SK Telecom said it plans to drop a planned acquisition of a 35% stake in Advanced Digital Chips, a local non-memory chip designing company, for Won61.4 billion, as its board of directors rejected the plan, which would have made SK Telecom the largest shareholder in Advanced Digital.
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4th July 2007
SingTel eyes opportunity to increase stake in Bharti Airtel
It seems increasingly likely that Singapore Telecom (SingTel) will move to increase its ownership of India's largest cellular and alternative fixed-line operator, Bharti Airtel Ltd, as reports emerge concerning an agreement by Airtel's parent, Bharti Enterprises, to sell an indirect 4.99% stake in Airtel to a wholly-owned unit of Temasek Holdings, the Singapore state-owned investment company that also controls SingTel.
Although Bharti Enterprises is reluctant to reveal the identity of the Temasek subsidiary that will buy the stake, as well as the value of the proposed transaction, it does seem inevitable that Temasek will then transfer the stake to SingTel, increasing that operator's stake in Bharti Airtel to almost 35.5%. If the deal goes ahead, Bharti Enterprises will continue to hold more than 45% of Airtel. While it currently seems highly unlikely that Bharti Enterprises will reduce its stake to below that of a controlling interest, there is still room for SingTel to increase its ownership a little further, possibly by buying publicly-traded shares.
The deal would be a lucrative opportunity for SingTel, which has majority-owned cellular businesses throughout Asia. Bharti Airtel served 1.871 million fixed-line and 37.141 million cellular telephony subscribers at the end of March 2007, and an ongoing network modernisation and expansion programme is geared towards increasing its availability in India's rural and less prosperous areas. With an overall mobile penetration rate of 13.5% at the end of 2006, there remains ample scope for operators such as Bharti Airtel to massively increase their subscriber base.
Active in all 23 of India's telecommunications service areas (or 'circles'), Bharti Airtel is the largest alternative operator in India and operates under the Airtel brand name. Its GSM networks covered approximately 59% of the territory of India and the company has recently signed a number of contracts with its core infrastructure suppliers, including Nokia Siemens Networks, to greatly expand this coverage. Bharti Airtel is the leading supplier of mobile services in India, with an approximate 22.9% share of the wireless market as of March 2007, closely followed by Hutchison Essar and incumbent Bharat Sanchar Nigam Ltd. With a 40,500km fibre-optic backbone network, connected to two international cable systems (i2i and SEA-ME-WE 4), Bharti Airtel is also a key player in India's domestic and international long-distance service markets.
For the year ended March 31, 2007, Bharti Airtel posted total revenues of IRs195,196 million, up by 59% from IRs116,215 million a year previously. Similarly, EBITDA grew by 72% year on year, from IRs43,374 million to IRs74,508 million, while net income grew by a massive 89%, from IRs22,567 million to IRs42,571 million. By increasing its stake in Bharti Airtel, even by a marginal amount, SingTel will substantially increase its share of the operator's revenues, which it will likely use in increasing its mobile and broadband activities elsewhere in Asia.
Bharti Airtel and Singapore Telecom are profiled separately by ITI within the Network Operators Worldwide (NOW) service, while the Indian telecommunications market is covered in a separate market report. Please visit our website at www.itireports.com for further details, including downloadable executive summaries and table of contents, as well as online ordering forms.
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3rd July 2007
Nokia Siemens Networks to invest US$100 million to strengthen its operations in India
Nokia Siemens Networks has announced that it plans to invest US$100 million in India over the next three years as a part of its commitment to develop a strong telecommunications environment in India. This is to better address and drive the growth of Indian mobile industry and to better serve its customers. This investment will include setting up a proposed telecommunication equipment manufacturing facility in Tamil Nadu for wireless network equipment, new offices across various cities, additional development of an existing R&D centre, and expanding the Global Networks Solution Centre.
Simon Beresford-Wylie, CEO, Nokia Siemens Networks, said: "The Indian telecommunications market is entering a next wave of growth; one that will see a rapid build out of mobile and broadband networks outside the major cities and delivery of a host of new services to consumers across the country. To address this growing local demand, and reduce the overall time to market of products and services to our operator customers, we are investing in strengthening our local presence and creating a strong ecosystem in India.”
The proposed facility aims to address the strong market demand in India and will manufacture high-end equipment. Nokia Siemens Networks will also establish a network of suppliers with focus on increased localised sourcing. The construction work at the site will begin later this year and commercial production is expected to begin in 2008.
“Nokia Siemens Networks has experienced strong business success since the launch of its operations in India,” said Ashish Chowdhary, Head of India Sub-region, Nokia Siemens Networks. “With our extensive managed services capability and end-to-end product portfolio, we are committed to building a strong local telecommunication ecosystem in India to address and drive the growth of the Indian mobile industry.”
Nokia Siemens Networks’ operations in India include Sales & Marketing, Research & Development, Manufacturing and a Global Networks Operations Centre. Headquartered at Gurgaon, the company has presence in over 170 locations across the country.
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3rd July 2007
Virgin Media confirms review of strategic alternatives
Virgin Media Inc has announced that it has received a proposal to acquire 100% of the common stock of the company from an unnamed group, which is reported to be US private equity company, Carlyle Group.
Virgin Media said that it has not engaged in negotiations with the offeror. The proposal is based on public information and is subject to various conditions, including a due diligence examination and a period of exclusivity. The proposal also states that it will be withdrawn if its terms are publicly disclosed. Prior to the receipt of the proposal, the company's board of directors had initiated a review with Goldman Sachs of strategic alternatives, including a process for a possible sale of the company. The proposal will be considered as part of the review. However, there is no assurance that any transaction will occur or, if so, at what price. The company said that it does not intend to comment further on the process unless and until a definitive agreement is executed or the process is abandoned.
According to Reuters, Virgin Media's Nasdaq-listed shares surged almost 20% to US$28.88, giving the group a market capitalisation of US$9.4 billion. Analysts said an offer could be pitched between US$30 and US$35 per share and draw other bidders into an auction.
Sources familiar with the situation told Reuters that Carlyle had approached Virgin Media over a possible bid but declined to disclose the price put forward.
Virgin Media has reportedly appointed Goldman Sachs to seek a possible bidder and consider the options.
Virgin Media, which sells cable TV, telephone, Internet and mobile phone services, was formed from the merger of cable operators NTL and Telewest and Virgin's mobile phone division. In 2006, a private equity consortium approached NTL-Telewest about a potential takeover but the price of US$32 a share was considered too low.
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3rd July 2007
ECI agrees to be acquired in US$1.2 billion all-cash transaction
ECI Telecom Ltd, a provider of networking infrastructure equipment, has entered into a definitive merger agreement for the company to be acquired by affiliates of the Swarth Group, an investment vehicle controlled by Shaul Shani, and certain funds that have appointed Ashmore Investment Management Ltd as their investment manager, in a transaction valued at approximately US$1.2 billion.
Under the terms of the agreement, ECI shareholders will receive US$10 per share in cash at closing, representing a premium of approximately 22% over ECI's average closing share price during the 30 trading days ended June 15, 2007. The company confirmed it was in discussions with third parties regarding a possible transaction on June 17, 2007. There is no financing condition to the obligations of the buyers to consummate the transaction.
The board of directors of ECI approved the agreement and recommended that ECI shareholders vote in favour of the transaction. The closing of the transaction is subject to shareholder approval, certain regulatory approvals and other customary closing conditions. It is currently anticipated that the transaction will be consummated by the end of 2007. Upon the closing of the transaction, ECI ordinary shares would no longer be traded on NASDAQ.
Each of Koor Industries Ltd, Clal Industries & Investments and a group led by Carmel Ventures, the owners of an aggregate of approximately 44% of ECI's outstanding ordinary shares, have entered into voting undertakings with the buyers under which they have agreed to vote their shares in favour of the transaction. These undertakings will terminate if the board of directors of ECI changes its recommendation in favour of the proposed transaction with the current buyers.
Under the terms of the agreement, ECI may actively solicit alternative proposals from third parties until July 31, 2007 and intends to consider any such proposals with the assistance of its independent advisors. ECI does not intend to disclose developments with respect to this solicitation process unless and until its board of directors has made a decision regarding any alternative proposals. ECI advises that there can be no assurance that the solicitation of superior proposals will result in an alternative transaction. In addition, ECI may, at any time, subject to the terms of the merger agreement, respond to unsolicited proposals. If the company accepts a superior proposal, a break-up fee would be payable by the company to the buyers.
Shlomo Dovrat, Chairman of the Board of Directors of ECI Telecom, said: "Our focus, as a board, has always been to maximise long term shareholder value. In the last few years, ECI was able to emerge from the telecom crisis as a vibrant successful company growing its market share in a highly competitive market. At the board we evaluated our strategy going forward and while excited with the opportunities we also recognised the challenges of continuing the path as an independent public company operating in a competitive and consolidating market. After careful and thorough analysis, and with the completion of extensive negotiations with the buyers, the board of directors has decided to endorse this transaction as being in the best interest of our shareholders and recommends that it is approved by the shareholders. We believe that this transaction recognises the value of ECI's strong market position and innovative solutions, while providing our shareholders with an attractive cash offer. We have high regards for the investor group and are confident ECI will continue to thrive under its new ownership structure."
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3rd July 2007
Bharti Airtel and Nokia Siemens Networks sign MoU for US$900 million network expansion
Bharti Airtel Ltd and Nokia Siemens Networks have strengthened their partnership further by signing a memorandum of understanding (MoU) for an approximately US$900 million expansion contract across Airtel’s mobile, fixed and Intelligent Network (IN) platforms. In the first multi platform network contract of its kind to be awarded in India, Nokia Siemens Networks will expand Airtel’s GSM network in eight circles; its National Long Distance (NLD) and International Long Distance (ILD) network with 1.8 million Next Generation Network (NGN) ports – the largest ever NGN contract in the country – and its international calling card prepaid service capacity by 4.5 million news users. The GSM and NGN expansions are planned over two years and the international calling cards expansion over three years.
The two-year GSM expansion will cover the eight existing circles of Mumbai, Maharashtra & Goa, Gujarat, Madhya Pradesh & Chattisgarh, Bihar & Jharkhand, Orissa, Kolkata and West Bengal, where Nokia Siemens Networks already provides equipment and managed services. The expansion will enable Airtel to rapidly expand its geographical footprint to rural India and increase its overall network capacity.
The contract includes network planning, implementation and project management, handling of local logistics and materials, as well as system integration for the base station sites. The network will be supported by the NetAct network and service management system. Nokia Siemens Networks will deploy the latest GSM equipment such as Flexi Edge and Ultrasite BTS, BSC3i, 3GPP-based mobile softswitching solution, including 3G-capable MSC servers and media gateways, and transmission network, including PDH and SDH.
For the two-year fixed network expansion, Nokia Siemens Networks will deploy 1.8 million NGN ports across Airtel’s NLD and ILD networks. The largest NGN expansion exercise in the country will allow Airtel to consolidate its position as a leading fixed-line operator covering Class 4 – Long Distance National and International Switches. Nokia Siemens Networks will deploy its complete IP trunking solution with SURPASS hiE 9200 softswitches, SURPASS hiG 1200 media gateways and SURPASS hiR 200 media servers. For optimised support of international traffic, some of the components will be deployed in other countries.
The three-year international calling cards services expansion will see Airtel more than quadruple its capacity and adequately address its calling card business expansion to tap more international markets. The calling card prepaid service will be supported by Nokia Siemens Networks’ IN@vantage platform for intelligent services. It also allows Bharti to increase network traffic and related revenues by addressing specific market segments and user expectations with dedicated communication solutions.
Both Nokia and Siemens have been associated with building Airtel’s mobile and fixed networks. The previous major deal for GSM expansion that was signed in 2006 between Nokia and Bharti was valued at US$400 million.
Bharti Airtel, a group company of Bharti Enterprises, is one of India’s leading private sector providers of telecommunications services with an aggregate of 42.68 million customers as of the end of May 2007, consisting of 40.74 million mobile customers.
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3rd July 2007
Ghana: Expressions of interest invited for stake in Ghana Telecom
The National Telecommunications Policy (NTP) of the Government of Ghana (GoG) is aimed at facilitating the development of a framework, which will promote the government’s objective for every citizen and resident of the Republic of Ghana to have available high quality and affordable access to information and communication services to help transform the country into a knowledge-based society and technology-driven economy. The objective recognises the primacy of integrating and growing the wealth of indigenous social and technological knowledge to inform, enhance and sustain the development of Ghana as a distinct and productive player in the global information age.
In furtherance of this objective, the NTP has defined the framework within which the telecommunications sector in Ghana will evolve towards this vision with particular emphasis on providing universal access for all communities and population groups to telephone, Internet, and multimedia services.
To this end, the GoG, the sole shareholder of Ghana Telecommunications Company Ltd (GT), intends to offer for sale a share of just over 66% of the company to a strategic investor. The privatisation seeks to attract private sector-led expansion and investment in the telecommunications sector.
GT, the largest and the main telecommunications operator in Ghana, was established in 1974 as part of the then Post & Telecommunications Corporation (P&T). The company has experienced significant growth over the past 10 years in fixed and mobile telephony, offering voice telephony, cellular communication, telex, telegraph and satellite communications. It also offers other value-added services, such as paging, sale, lease and maintenance of subscriber premise wiring and Internet connectivity.
The strategic investor should be a company (and not an individual), must have managed both fixed and mobile lines with a minimum of 1,000,000 fixed lines and a mobile subscriber base of not less than 6,000,000, and should have the pedigree and capacity which among others include:
- Financial resources, sufficient to expand the fixed network capacity of GT to facilitate the rapid development and expansion of traffic volume to a minimum of 800,000 fixed lines within three years in order to extend telephone services to every town for Internet and other applications. A fixed-line in this context is any technology which allows one to make broadband telephone connection to the computer so that not only voice, but high-speed data transfer, the Internet and other applications, including video conferencing facilities, can be transmitted at a competitive tariff;
- Financial resources sufficient to increase the current mobile subscriber base of 1,046,002 by a minimum of 300% within three years of operation and ultimately emerge as the market leader using modern technology, products and customer-focused services;
- Provision of management expertise and technical services to facilitate the positioning of GT on the global market;
- Improvement in the quality of service of the existing and proposed telephone infrastructure to meet the specifications stipulated in GT’s current or prospective licence conditions;
- Improvement in revenue assurance and business support initiatives in call data records, customer care, fault reporting and management, especially for billing and collection systems;
- Enhancing GT’s infrastructure to enable the provision of a broad array of multimedia services;
- Commitment to prepare GT for listing on the Ghana Stock Exchange within three years;
- Acceptance to off-load a portion of GoG’s shares to Ghanaians, including GT employees;
- Commitment to offer GT employees continuous human resource development and training, to enhance their technical and managerial competence, including customer relationship management in line with the performance management scope;
- To develop effective methods for the investigation of malpractices in GT with the co-operation of the Ghanaian regulatory authorities;
- To operate in such a manner as to satisfy GT’s licence conditions and regulations of the National Communications Authority (NCA), the regulatory body.
Interested parties should submit their expression of interest, which should contain the following: business name; physical location, contact person, address, telephone, fax and email address; brief organisational profile detailing shareholders/consortium members and directors/shareholders; certified copies of incorporation or registration; qualification and experience of key personnel; and, experience in managing both fixed and mobile telephone lines.
Expressions of interest should be addressed and delivered in plain sealed envelopes marked “Ghana Telecommunications Company Limited - Expression of Interest from Strategic Investors” to: The Transaction Advisors, c/o Ministry of Communication, Room N6, PO Box M38, Accra.
Expressions of interest should be submitted not later than July 20, 2007.
Contact: Ministry of Communication, PO Box M38, Accra. Tel: 00 233 21 666465. Fax: 00 233 21 667114. Web: www.moc.gov.gh.
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2nd July 2007
AT&T to acquire Dobson Communications
Underscoring its interest in serving the rural market, AT&T Inc has announced that it will acquire Dobson Communications Corp, a provider of rural and suburban wireless communications services, for approximately US$2.8 billion in cash.
The transaction will enhance AT&T's wireless network coverage in the US by combining the two companies' complementary networks. Dobson, which markets wireless service under the Cellular One brand, has provided roaming service to AT&T and predecessor companies since 1990. This combination will allow AT&T to deliver a better customer experience to its wireless customers, including Dobson's 1.7 million subscribers.
"AT&T is focused on mobility, which includes offering our customers in markets large and small the best and broadest wireless network," said Randall Stephenson, Chairman and CEO of AT&T. "The rural market is attractive to us, and the addition of Dobson to our wireless family will expand our network coverage and better allow the customers of both companies to be connected whenever, wherever and however they want.
"The combination of our two companies also will create value for AT&T's stockholders," Stephenson added. "Our wireless business is a significant and growing revenue generator and is critical to our future. This combination brings two key assets - Dobson's 1.7 million customers and its strong, compatible network - to AT&T, delivering both growth and cost savings opportunities."
"This transaction reflects the natural evolution of the wireless industry. With Dobson's network reaching nearly 13 million consumers in 17 states, the acquisition will expand AT&T's reach in rural and suburban markets," said Everett Dobson, Chairman of Dobson Communications. "Dobson is proud of the role we have played in bringing wireless service to rural customers, but we also take pride that these operations will become part of a company with the resources and potential of AT&T. Our customers will gain access to the wide range of innovative products and services AT&T offers, such as the revolutionary iPhone, to which they would not have access without this merger."
Following the acquisition, Dobson will be incorporated into AT&T's wireless operations.
Dobson's network covers rural and suburban areas in Alaska, Arizona, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Oklahoma, Pennsylvania, Texas, Virginia, West Virginia and Wisconsin. Because Dobson's network overlaps minimally with AT&T's, the acquisition will expand geographic coverage for both companies' customers. Additionally, Dobson's 850MHz spectrum will enhance AT&T's service quality in those rural and suburban markets.
Dobson customers will have access to the largest digital voice and data wireless network in the US, AT&T's fully-integrated GSM network, which covers 284 million people in 13,000 cities and towns. In addition, Dobson customers will have access to AT&T's service platforms and range of products and services.
The two companies expect to provide a smooth integration to their customers given their long-standing relationship as roaming partners.
Under the terms of the agreement, approved by the boards of directors of both companies, Dobson stockholders will receive US$13.00 per share for a total equity price of US$2.8 billion on a fully-diluted basis. Including net debt as of the first quarter of 2007, the total transaction value is approximately US$5.1 billion. The US$13.00 price per share represents a 16.9% premium over the closing price of US$11.12 on Thursday, June 28, 2007. The majority stockholder in Dobson Communications has consented to the terms of the agreement.
AT&T expects the proposed transaction to benefit stockholders by enhancing AT&T's ability to provide the high-quality services customers expect in the highly competitive wireless segment. AT&T expects to realise significant annual savings in reduced roaming expenses. The transaction also offers numerous synergy opportunities in areas including overheads and operations. AT&T expects the net present value of these potential synergies to be approximately US$2.5 billion. The addition of Dobson is also expected to offer additional growth opportunities.
AT&T expects year-one dilution to earnings per share from this transaction to be minimal - between US$0.03 and US$0.04 on a reported basis - and that the transaction will have a positive and growing impact on EPS and free cash flow starting in the second year after the acquisition closes. AT&T's financial outlook remains unchanged, with expected double-digit adjusted EPS growth in both 2007 and 2008. AT&T continues to expect strong growth in free cash flow after dividends - US$4 to US$5 billion in 2007 and growing to more than US$6 billion in 2008.
Because of the expected minimal effect on AT&T's earnings, AT&T does not plan to provide separate adjustments for the merger-related costs of this transaction in its quarterly results.
The acquisition is subject to regulatory approval. Due to the limited overlap of the two companies and the existence of substantial competition in each area where overlaps exist, the company's goal is to obtain approvals by the end of 2007.
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2nd July 2007
BCE reaches definitive agreement to be acquired by investor group led by Teachers, Providence and Madison
BCE Inc has entered into a definitive agreement under which it will be acquired by an investor group led by Teachers Private Capital, the private investment arm of the Ontario Teachers Pension Plan, Providence Equity Partners Inc and Madison Dearborn Partners, LLC. The all-cash transaction is valued at Can$51.7 billion (US$48.5 billion), including Can$16.9 billion (US$15.9 billion) of debt, preferred equity and minority interests. The BCE board of directors unanimously recommends that shareholders vote to accept the offer.
Under the terms of the transaction, the investor group will acquire all of the common shares of BCE not already owned by Teachers for an offer price of Can$42.75 per common share and all preferred shares at the prices set forth in the schedule. Financing for the transaction is fully committed through a syndicate of banks acting on behalf of the purchaser. The purchase price represents a 40% premium over the undisturbed average trading price of BCE common shares in the first quarter of 2007, prior to the possibility of a privatisation transaction surfacing publicly. The transaction values BCE at 7.8 times EBITDA for the 12-month period ending March 31, 2007.
"This proposed transaction concludes a comprehensive and disciplined review of the company's strategic alternatives launched April 17," said Richard Currie, Chairman of the Board of BCE. "It will deliver substantial value creation for our shareholders. In addition, a majority of the equity will be owned by Canadians."
"The transaction delivers to our shareholders the economic benefit of the work done to focus on our core business and to strengthen Bell with a new cost structure and new competitive capabilities," said Michael Sabia, President and CEO of BCE. "All members of the investor group have outstanding track records in building strong and resilient enterprises and they share our commitment to customers, our employees and the communities we serve."
Upon completion of the transaction, the equity ownership of BCE would be as follows: Teachers Private Capital (52%), Providence (32%), Madison Dearborn (9%) and other Canadian investors (7%).
The purchaser has obtained a debt commitment to finance the transaction. The purchaser anticipates requiring BCE, Bell Canada and Bell Mobility to redeem outstanding redeemable debentures maturing up to August 2010 pursuant to their terms as of and subject to the closing of the transaction. The acquisition debt financing would become an obligation of BCE and be guaranteed by BCE's then subsidiaries (other than Bell Aliant Regional Communications Income Fund and Northwestel Inc). As to Bell Canada, the purchaser's financing would comply as to ranking and security with the then existing Bell Canada debentures and medium-term notes issued under the 1976 and 1997 indentures. In addition, the purchaser has obtained commitments to make available a combination of facilities in order to support the ongoing liquidity needs for the company.
The transaction is subject to customary approvals, including CRTC approval for the transfer of Bell's broadcast licence, and Industry Canada with respect to the transfer of spectrum licences.
The transaction includes a break-up fee of Can$800 million (US$751 million), payable by BCE in certain circumstances and a reverse break-up fee of Can$1 billion payable by the purchaser in certain circumstances. The transaction will be completed through a plan of arrangement, which will require the approval of two-thirds of outstanding common and preferred shares, voting as a class. Shareholders will be asked to vote on the transaction at a special meeting, the details of which will be announced in due course. The company anticipates that the transaction will be completed in the first quarter of 2008.
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2nd July 2007
Tele2 divests Tele2 Portugal to SonaeCom
Tele2 AB has sold its Portuguese operations, including fixed and broadband businesses, to SonaeCom SGPS SA. Sonaecom will pay approximately SKr160 million in cash, including a brand licence agreement worth approximately SKr14 million, on a debt and cash free basis. Completion is expected following approval from the Portuguese Competition Authorities.
At the end of May 2007, Tele2 Portugal had approximately 310 000 fixed telephony customers and 12,000 broadband customers. In 2006, Tele2 Portugal had revenues of SKr470 million and EBITDA of negative SKr77 million. The transaction will have a positive one time effect on Tele2 of approximately SKr10 million.
Tele2 is an alternative telecommunications operator with 29 million customers in 22 countries. The company offers fixed and mobile telephony, broadband, data network services and cable TV.
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2nd July 2007
Areeba Syria announces merger with South Africa's MTN
InvestCom, the company that owns the Syrian telecommunications company Areeba Syria, has announced its merger with MTN Group Ltd of South Africa. The company did not disclose financial details of the transaction.
Ismael Jaroudi, CEO, Areeba Syria, said: "The desire to further advance cellular communication in Syria and the Syrian government's commitment to encourage investments in the country inspired the merger move. This development will help meet the soaring demand in Syria for advanced telecommunications facilities."
Jaroudi went on to state that "the merger brings together two companies that will integrate their strengths, culture and vision to generate growth. This merger and its presence in 21 countries in Africa and Asia will further enable MTN it to enter other important markets. The confidence inspired by Areeba's subscribers and MTN's expertise and immense human resources will bring a new era in telecommunications in Syria."
Economic analysts and experts in the telecommunications sector expect that the merger would stir stronger competition in the markets where MTN and Investcom are currently present. The deal represents a successful horizontal merger between two groups, leading to further expansion geographically and in services, eventually meeting the requirements of over 488 million people in the markets they operate in.
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