On the Money – In Brief
- Qatar Telecom (Qtel), has announced plans to sell shares to the public in the group's Tunisian unit in 2011 and its Iraqi division in two years time. Last month, Qtel and Princesse Holding of Tunisia agreed to buy Orascom Telecom Holding’s 50% stake in Tunisiana for USD1.2 billion to take full control of the company. Asiacell, Qtel’s Iraqi mobile division, delivered sales of QAR3.7 billion (USD1.0 billion) in the first nine months of this year, a year-on-year growth rate of 28.9%, whilst the cellco’s EBITDA in the period also improved y-o-y by 32.7% to QAR2.1 billion.
- Millicom International Cellular (MIC), Tanzanian subsidiary, Millicom Tanzania Limited, which trades as Tigo Tanzania, has agreed to sell approximately 1,020 towers to Helios Towers Tanzania (HTT), a wholly owned unit of Helios Towers Africa (HTA).MIC says Tigo Tanzania will receive a cash payment of at least USD80 million and will retain a ‘significant minority interest’ in HTT. They have entered into a long-term leasing agreement under which HTT will provide Tigo Tanzania with access to wireless communications towers and a build-to-suit agreement to support the company's wireless network expansions. First closing of the transaction, subject to customary closing conditions, is expected in Q2 2011.
- Vox Telecom renewed a cautionary announcement, warning shareholders that it’s still involved in discussions that could affect its share price. The company is strongly rumoured to be planning a delisting from the JSE, where it trades on the AltX alternative exchange.Vox first published the cautionary notice on 13 September, and renewed it again on 26 October.The share has failed to perk up on investor concerns that the company is heavily exposed to the least-cost routing (LCR) market where arbitrage opportunities are going away as wholesale mobile call termination rates come down. Its subsidiary, Vox Orion, is the country’s largest LCR provider.If Vox is planning a delisting, it’ll be the second telecommunications company to do so. Last week, AltX-listed TeleMasters announced that it would seek shareholder approval to delist.