Monday, November 3, 2008

Telecommunication Trend #2

TMI may sell additional stake to Khazanah
Reuters is reporting that TM International (TMI), recently spun-off from Telekom Malaysia, is considering a stake sale to state investment vehicle Khazanah to finance an acquisition in India, citing local press reports. It is understood that the company is considering the sale in place of a loan to finance the USD1.8 billion loan it took to acquire a 19% holding in Indian cellco Idea Cellular. Khazanah already holds a 44.51% stake in TMI. Additionally, the report suggests that TMI has looked at selling a 10% stake in its Indonesian unit Excelcomindo, although it is believed that current weak market conditions have forced the sale to be reconsidered.
Mobily buys another ISP
The Saudi cellular operator Mobily has paid SAR80 million (USD21.3 million) to take a 94% stake in local internet service provider Zajil. The deal, which was first announced back in July, is Mobily’s second move into the Saudi data market, following last year’s USD400 million buy of WiMAX licensee Bayanat al-Oula. The country’s internet sector is currently dominated by Saudi Telecom Company (STC), with more competition on the horizon in the form of three new wireline licensees led by PCCW, Verizon and Batelco.
XL secures USD140m loan to fund CAPEX plans
Indonesian mobile operator PT Excelcomindo (XL) has secured a USD140 million syndicated loan from four international banks to help fund its capital expenditure plans. XL, an 83.79%-owned unit of Telekom Malaysia, was granted the funding facility by DBS Bank, Economic Development Canada, The Bank of Tokyo-Mitsubishi UJF and Chinatrust Commercial Bank, reports Reuters. The mobile operator has increased its CAPEX target for 2008 from USD1 billion to USD1.25 billion, a significant portion of which will be used to upgrade its networks as subscriber numbers rise sharply. XL had 22.9 million mobile subscribers at the end of June 2008, up 124% year-on-year.

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