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Tag: Citigroup

  • Reliance Jio acquires RCom’s wireless infra assets

    Reliance Jio acquires RCom’s wireless infra assets

    Mumbai: Reliance Jio Infocomm Ltd (RJio), a subsidiary of Reliance Industries Ltd (RIL), today signed a definitive agreement for the acquisition of the wireless infrastructure assets of Reliance Communications Ltd (RCom).

    An asset monetisation process for RCom assets was mandated by the lenders of RCom, who appointed SBI Capital Markets Ltd to run the process. The process was supervised by an independent group of industry experts. RJio emerged as the successful bidder in the two-stage bidding process.

    Consequent to the agreement, RJio will acquire assets under four categories–towers, optic fibre cable network, spectrum and media convergence nodes from RCom and its affiliates. These assets are strategic in nature and are expected to contribute significantly to the large scale roll-out of wireless and fibre to home and enterprise services by RJio.

    The acquisition is subject to receipt of requisite approvals from governmental and regulatory authorities, consent from all lenders, release of all encumbrances on the said assets and other conditions precedent. 

    Consolidation has been the buzzword in the telecommunications industry. From as many as 13 players at one point in time, we are now left with just four major contenders.  Earlier this year, Vodafone India and Idea Cellular decided to merge operations to create India’s largest telecom operator worth more than $23 billion beating Sunil Bharti Mittal-led Airtel. 

    RJio is being advised by Goldman Sachs, Citigroup Global Markets, JM Financial Private Limited, Davis Polk & Wardwell LLP, Cyril Amarchand Mangaldas, Khaitan & Co and Ernst & Young on this transaction.

    Also Read:

    The year the telecom sector quaked

    Jio continues leading broadband subs addition while wireline internet loses subs in Oct

  • Apollo sells 4.4% stake in Dish TV for Rs 486 crore; Citigroup buys 2.6 crore shares

    Apollo sells 4.4% stake in Dish TV for Rs 486 crore; Citigroup buys 2.6 crore shares

    MUMBAI: Apollo India Private Equity II (Mauritius) has raised approximately Rs 486 crore via a 4.4 per cent stake sale in Essel Group’s direct to home (DTH) company Dish TV. The company sold 4.7 crore shares in Dish TV at Rs 103.72 per share on the Bombay Stock Exchange (BSE) on 19 June, 2015.

     

    Of the shares sold by Apollo, Citigroup Global Markets Mauritius snapped up 2.6 crore shares for Rs 103.65 per share totalling to approximately Rs 268.5 crore.

     

    As on 31 March 2015, Apollo held an eight per cent stake in Dish TV through its outstanding global depository receipts (GDR). Apollo had acquired these shares at Rs 39.80 for a total consideration of Rs 465 crore (or $100 million) in 2009. Moreover in April this year, Apollo converted a part of the GDRs into equity shares and had sold it for Rs 262.5 crore via an open market transaction.

     

    On 19 June (Friday), Dish TV India closed at Rs 105.60, down Rs 4, or 3.65 per cent on the bourses. The share touched its 52-week high Rs 117.25 and 52-week low Rs 55.40 on 17 June, 2015 and 26 September, 2014, respectively.

  • Apollo’s 3% stake sale in Dish TV earns it a profit of Rs 135 crore

    Apollo’s 3% stake sale in Dish TV earns it a profit of Rs 135 crore

    MUMBAI: US based alternative assets manager Apollo Global Management part sold its three per cent stake in direct to home (DTH) operator Dish TV for Rs 262.5 crore, through an open market transaction on 10 April. 

     

    The stake comprising 32 million shares of an average price close to Rs 82, as compared to their original purchasing price of approximately Rs 39, was picked up by an investment unit of Citigroup and a mutual fund under Birla Sun Life.

     

    With the sale purchase, Apollo will see a profit of Rs 135 crore. The Private Equity (PE) firm is now left with eight per cent stake in the company through its outstanding global outstanding depository receipts (GDR). This stake is valued at Rs 721 crore.

     

    It was in 2009 when the PE firm invested $100 million to gain an 11 per cent stake in the company, which was the firm’s first investment in the country. Dish TV is part of the Subhash Chandra owned Zee Network with approximately 12.5 million net subscribers. With a strong range of 470 television and audio channels, it has 43 High Definition (HD) channels under its kitty. For the quarter ending 31 December, 2014 the company’s net loss stood at Rs 2.9 crore.

    Meanwhile the ESSEL group through its continuation of an earlier intimation dated 26  August last year,  informed the BSE that the Board of Directors of the Company at their meeting held on August had considered and approved to transfer the Company’s non-core business (including set top boxes, dish antenna, and related services) to its Wholly Owned Subsidiary – ‘Xingmedia Distribution Private Limited’ (presently known as ‘Dish Infra Services Private Limited), subject to necessary approvals and as per the applicable provision of the Companies Act, 2013. 

     

  • GoDaddy initiates IPO

    GoDaddy initiates IPO

    MUMBAI: GoDaddy, the Scottsdale internet domain registration company, has filed a registration statement on Form S-1 with the US Securities and Exchange Commission relating to a proposed initial public offering.

     

    According to a press statement issued by the company, the number of shares to be offered and the price range for the offering has still not been determined. The company announced the filing in a tweet.

     

    International news websites have stated that GoDaddy has notified the Securities and Exchange Commission that it could raise about $100 million in an IPO.

     

    Morgan Stanley, JPMorgan Chase and Citigroup are leading the offering. Among the list of underwriters is KKR’s capital markets arm. He will remain as executive board chairman.

     

    In another recent development, the company also announced that its founder, Bob Parsons, will step down as executive chairman. GoDaddy was founded in 1997 and was bought in 2011 by a group of private-equity firms, led by KKR and Silver Lake, for $2.3 billion including debt.

     

    There have been reports that GoDaddy has reported a loss of $200 million or 79 cents a share on revenue of $1.13 billion in 2013. As of 31 March 2014, it reported assets of $3.25 billion against liabilities of $2.42 billion, including $1.09 billion in long-term debt.

     

    It was in the year 2005 that GoDaddy caught the attention of the world with its racy ads splashed during Super Bowl. Though the brand is known for its outrageous and funny ads in the last couple of years it has toned down its marketing. 

     

    It will be interesting to see how GoDaddy will reposition itself post IPO.

  • Eros plans $250 mn public float on NYSE, to delist from AIM

    Eros plans $250 mn public float on NYSE, to delist from AIM

    MUMBAI: Eros International Plc is planning a $250 million public float in the New York Stock Exchange while delisting from the Alternative Investment Market of the London Stock Exchange.

    The filmed entertainment company has filed with the United States Securities and Exchange Commission for an initial public offering of its A Ordinary Shares to raise up to $250 million.

    Eros said it decided to move to the US capital market as it offers access to additional capital on more favourable terms and increases liquidity. “It will also offer more relevant peer group and broader analyst coverage,” Eros said in its filing.

    The number of shares to be offered and the price range for the offering have not yet been determined.

    Eros has appointed Deutsche Bank Securities, BofA Merrill Lynch, Citigroup and UBS Securities LLC as joint book-runners for the offering.

    The company plans to use the proceeds from the proposed IPO to fund new co-productions and acquisitions of Hindi and regional film catalogue content and film-related content. The IPO money will also be utilised to grow its digital distribution channel and strengthen other distribution channels.

    Eros, which was listed on Bombay Stock Exchange and National Stock Exchange in 2010, also revealed that it will not pay any dividends in the foreseeable future and intends to retain future earnings. The company has not declared any dividend since incorporation in 2006 as all profits have been retained and utilised to grow its business.

    For the fiscal 2011, the company‘s revenue grew to $164.6 million, from $149.7 million a year ago. Eros has posted revenue of $166.3 million for the nine months ended 31 December 2011, from $124.3 million in the same period of the earlier year.

    EBITDA increased to $58.6 million for fiscal 2011 from $53.2 million for fiscal 2010. It stood at $59.6 million for the nine months ended 31 December 2011 compared to $45.4 million a year ago.

    The aggregate outstanding debt of the company stood at $228.6 million as of 31 December 2011, with $16.2 million remaining available under existing financing arrangements, and cash and cash equivalents of $120 million.

    The company revealed that it will release over 270 new films over the next three fiscal years and has aggregated a film library of over 1,900 films, plus approximately 700 additional films for which it only holds digital rights.

    Eros also claimed that its international distribution network extends to over 50 countries, including US, UK, Germany, Poland, Russia, Indonesia, Malaysia, Taiwan, Japan, South Korea, China and Arabic speaking countries, where Indian films are released through dubbing in local languages.

    The company intends to list its common stock on the New York Stock Exchange under the symbol “Eros”.

  • Citigroup picks up 6.3 % stake in VSNL

    Citigroup picks up 6.3 % stake in VSNL

    MUMBAI: The telecom sector is attracting investments not only in the global market but also in India. Citigroup Inc. has acquired a 6.3 per cent stake in telecom service provider Videsh Sanchar Nigam Ltd (VSNL).

    Disclosing this in a filing with the Securities and Exchange Commission, Citigroup has said that it now owns 18.61 million shares of VSNL. The The stake was bought through American Depositary Receipts listed on the New York Stock Exchange.

    VSNL expects to see volume growth in voice and data business. The company recently bought out the internet assets of 7 Star, a Mumbai-based cable operator. VSNL also acquired for Rs 750 million Direct Internet Ltd and its wholly owned subsidiary Primus Telecommunications India Ltd to strengthen its broadband presence in the Small and Medium Enterprises (SME) segment.

    The phone market is expanding rapidly in India. This has attracted global giants like Vodafone Group which bought a 10 per cent stake in Bharti Tele-Ventures.