“Bharti has tied up US$7.5bn of loans through Standard Chartered, Barclays and a roster of other international banks to fund its $10.7bn bid, which includes $1.7bn of Zain debt. The State Bank of India has also promised up to $1bn more to cover associated deal costs. At a reported interest rate of 2 percentage points over Libor, Bharti is being charged less than many investment grade companies would expect to pay”, FT reports.
So Bharti is on track in its purchase of Zain. And SingTel will have exposure to Africa.
The bad news is that Thailand’s government will present a plan in two months to “create a level playing field” for telecom firms, including possible compensation for changes to concessions, said Prime Minister Abhisit Vejjajiva.
Prosecutors will also make a decision on whether to seek damages over royalty payments to state-run TOT from Advanced Info Service, Thailand’s biggest mobile phone company that was owned by former PM Thaksin Shinawatra via Shin.
But SingTel and Temasek will be comforted that the Finance Minister said: “Whether there will be retroactive pursuit of fees forgone by the government from the company is unlikely. I don’t feel that it would be fair to go after shareholders of these companies for adjustments in the concessions that were made by the previous owner.” Remember AIS is an associate of SingTel and Temask has a 79% economic interest in Shin that is AIS’s controlling shareholder.
The concession of True Corp, Thailand’s third-biggest mobile operator, is set to expire in 2013. AIS’s expires in 2015 and Total Access’ in 2018. Each firm negotiated amendments to the original concessions, which the government’s legal advisory body said in 2007 failed to comply with the law.
More bad news: SingTel’s and StarHub’s joint bid for World Cup footie has been rejected. Footie fans will know who to blame if SingTel doesn’t cough up more (don’t see why StarHub would). If it does, it will lose money. Peanuty amounts but still money.
Makes me ashamed to be from RI. The CEO is an RI gal. RI boys don’t do such dumb things, only RI gals.