Honest 836 Report post Posted July 19, 2008 Swan Telecom to sell 26% stake to foreign firms Business Standard Swan Telecom, which has received licences to operate mobile phone services in 13 out of the 22 telecom circles in India, is in talks with foreign companies for diluting 26 per cent of its equity for around $470 million. "Arrangements are being worked out for selling a 26 per cent stake in the company," said Shahid U Balwa, managing director, Swan Telecom. The talks are happening considering a total equity value of the company around $1.8 billion. Including debt, the company's enterprise value is pegged around $2.2 billion. Meanwhile, real estate major Unitech's talks to sell 26 per cent stake in its mobile operations have picked up pace, with the company holding several rounds of talks with three international players for the deal this week. The company holds the licences through several unlisted subsidiaries. Senior Unitech executives said a potential partner would be shortlisted soon, with a final deal possible within weeks. With licences for 22 circles, the company is valued at $3 billion, said executives. It has already hired close to 70 senior staffers, including chief executive Rohit Chandra, a former Ericsson India executive vice-president who has also worked with operator Aircel. While Swan and Unitech's prospective international partners have not been named as yet, there is a growing buzz about cash-rich Emirates Telecommunication Company (Etisalat). Known to be interested in entering India (the company operates in 16 countries including Pakistan where it holds a 26 per cent stake in PTCL), it had earlier initiated talks with B K Modi-promoted Spice Communications, which was later acquired by Mumbai-based Idea Cellular. Sources said Etisalat has also spoken to Unitech, but the negotiations did not mature on valuation differences. There has also been talk of Etisalat having entered into exclusive talks with Swan Telecom. However Balwa denies that. Calls and messages to Etisalat International executives and the press office remained unanswered till the time of going to press. "We are in talks with a European and two West Asian telecom players," said Balwa. "There will be clarity on the talks by August-end," he added. Swan has the GSM mobile spectrum licence in four circles and has also applied for dual-use spectrum. The company is majority owned by the Mumbai-based Dynamix Balwas group of companies, which owns the property on which the Le Royal Meridien hotel has come up in Mumbai. Reliance Communications, which owned a 9.9 per cent stake in Swan, later sold its stake to a Mauritius-registered infrastructure fund. Regulations allow 74 per cent equity in an Indian telecom services company to be divested to a foreign company. Of this, 49 per cent can be done through the automatic route, while 25 per cent can only be sold with prior FIPB approval. The talks highlight the efforts of India's recently licensed mobile companies to divest equity in a bid to partner large international players who are seeking a toehold in the fastest growing mobile services market in the world. Share this post Link to post Share on other sites
Honest 836 Report post Posted September 22, 2008 Etisalat close to picking up over 40pc stake in Swan 22 Sep, 2008, 2145 hrs IST, PTI NEW DELHI: UAE's leading telecom operator Etisalat is understood be in the final stages of inking a deal with Swan Telecom for picking up over 40 per cent stake in the firm. According to sources close to the development, Etisalat is likely to sign a deal with Swan Telecom, which had recently bagged start-up GSM spectrum in many circles including Delhi, to acquire over 40 per cent stake in the telecom firm. Etisalat has been scouting for an Indian partner for quiet some time now and was reportedly in talks with other players including Spice Communication and Videocon-backed Datacom. Promoted by Dynamix Balwa Group of companies with interest in hospitality and real estate, Swan Telecom was in news for its reported association with Anil Ambani group company RCOM, which was said to hold 9.9 per cent stake in it at the time of applying for licence last year. RCOM officials, however, had said the company does not hold stake in Swan telecom anymore. Swan Telecom had received licence for rolling out operations in 13 circles. Etisalat, which operates in 16 countries across Asia, the Middle East and Africa has a presence in India, through its data services subsidiary Technologia in Bangalore. Share this post Link to post Share on other sites
Honest 836 Report post Posted September 23, 2008 Emirates Telecom buys 45 pct in India's Swan 23 Sep, 2008, 1513 hrs IST, REUTERS DUBAI: Emirates Telecommunications Corp (Etisalat) said on Tuesday it agreed to buy about 45 percent of India's Swan Telecom for up to $900 million. Etisalat, the second-largest Arab telecom firm by market value, said the deal implies a valuation of $2 billion for the Indian firm. Abu Dhabi-based Etisalat, which lost its monopoly at home when du started operations in early 2007, operates in 16 countries, including Saudi Arabia, Pakistan and Egypt. Share this post Link to post Share on other sites
