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MTS Ukraine out of TriMob purchase;Ukrtelecom in financial danger 

MTS Ukraine pulls out of TriMob purchase;Ukrtelecom in financial danger?
Mobile operator MTS Ukraine (Vodafone Ukraine) has cancelled its proposal to acquire TriMob, the 3G mobile subsidiary of fixed line incumbent Ukrtelecom, the Russian-backed company’s press department confirmed. MTS has withdrawn its application documents seeking approval of the purchase from the Antimonopoly Committee of Ukraine (AMCU), which had been due to give its decision on the merger plan on 1 December, following a period of public comment on the deal – first publicised as a preliminary agreement between Ukrtelecom and MTS in January.The finalisation of Ukrtelecom’s spin-off of its mobile asset remains contingent on consent from the State Property Fund (SPF), which has not given clear indication of its position on the MTS deal in recent statements. MTS’ press announcement appeared to blame the SPF, whilst not ruling out a further attempt to complete the deal, saying: ‘It was decided to withdraw the documents, because there is no harmonisation of the SPF, but if anything changes, we do not exclude the [possibility] that [we] return to this point.’
***South African telecoms firm MTN Group has held discussions with the Securities and Exchange Commission (SEC) of Nigeria to discuss the potential initial public offering (IPO) of its local unit, which is expected to take place during 2017, subject to suitable market conditions. The SEC’s director general, Mounir Gwarzo, told Reuters that MTN had discussed how to structure the share sale, including the possibility of issuing various classes of shares to targeted investor groups. Gwarzo said the commission was willing to support the share sale as long as it was within the parameters of the local laws and advised the telecoms firm to ensure that retail investors were protected, although he confirmed that the company was yet to submit a formal application for the sale.
***Israeli mobile network operator Cellcom has confirmed the filing of a request to appoint an interim liquidator to Golan Telecom, following the latter’s failure to pay due amounts for national roaming services. At the end of last week (27 November) Cellcom revealed that Golan had rejected demands to pay the ILS600 million (USD155.5 million) it reportedly owes the former, in response to which Cellcom said it would ‘continue the legal proceedings already commenced against Golan and may take additional measures, including filing a liquidation request against Golan’. Having now confirmed that it will also file a liquidation request against Golan tomorrow (due to procedural reasons), Cellcom noted that it anticipates that a ‘substantial reduction of the future revenues from Golan will have a material adverse effect on [its] revenues and results of operations’.
***Indian telecoms group Reliance Communications (RCOM) has incorporated a new subsidiary, Towercom Infrastructure Private Ltd (TIPL) with a subscribed and paid-up capital of INR100,000 (USD1,466). The creation of the new company is understood to be part of RCOM’s planned sale of a 51% stake in its infrastructure arm Reliance Infratel to Brookfield Infrastructure Partners. The two parties signed a non-binding agreement last month, under which the tower assets of Reliance Infratel would be transferred to a new special purpose vehicle (SPV) that would be majority owned by Brookfield.

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