Global Telecommunication Infrastructure Trust

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http://www.bloomberg.com/news/2012-07-19...offer.html

Temasek, CIC Said To Invest In GTI Trust’s Singapore IPO
By Ruth David, Joyce Koh and Fox Hu - Jul 19, 2012 2:29 PM GMT+0800
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Temasek Holdings Pte and China Investment Corp. agreed to invest in Global Telecommunications Infrastructure Trust’s initial public offering in Singapore, said three people with knowledge of the matter.
GTI Trust (GTI), the undersea cable unit of Reliance Communications Ltd. (RCOM), is selling $250 million to $300 million of stock to four sovereign wealth funds as part of the IPO, said two of the people, who asked not to be identified as the details are private. It wasn’t immediately clear how much Temasek or CIC invested.
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GTI Trust owns four subsea cable systems that carry Internet traffic and data around the globe, according to a prospectus filed in Singapore on July 5. Photographer: Prashanth Vishwanathan/Bloomberg
Companies have relied on large investors, including sovereign wealth funds, for IPO fundraising in Asia as volatile stock markets made offers more difficult to complete. IPOs in Singapore have raised just $824 million this year, compared with almost $7 billion in the first half of 2011, data compiled by Bloomberg show.
GTI Trust will probably price the units at the low end of a marketed range, and offer investors a yield of 11.5 percent, two of the people said. That’s a higher payout than other business trusts listed in Singapore such as Li Ka-shing’s Hutchison Port Holdings Trust. (HPHT)
Stephen Forshaw, a spokesman for Temasek, declined to comment. A phone call to CIC’s Beijing-based media office went unanswered.
GTI Trust owns four subsea cable systems that carry Internet traffic and data around the globe, according to a prospectus filed in Singapore on July 5. Reliance, controlled by Indian billionaire Anil Ambani, is attempting to sell assets to reduce net debt that stood at 358 billion rupees ($6.5 billion) at the end of March.
Deutsche Bank AG, DBS Group Holdings Ltd., Industrial & Commercial Bank of China (601398) Ltd. and Standard Chartered Plc are arranging the offering.
To contact the reporters on this story: Ruth David in Mumbai at rdavid9@bloomberg.net; Joyce Koh in Singapore at jkoh38@bloomberg.net; Fox Hu in Hong Kong at fhu7@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

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Totally unreliable...

http://economictimes.indiatimes.com/mark...069765.cms

Reliance Communications defers Flag Telecom's listing; cites poor markets conditions


MUMBAI: Reliance Communications (Rcom) has postponed plans for a public listing of its undersea cable unit-Flag Telecom in the wake of adverse market conditions.

The company is awaiting supportive market conditions and easing of prevailing global uncertainties to proceed with the offering/listing at an appropriate time in the future, in order to unlock the full value of the Flag Telecom assets, the company said in a statement on Friday.

Rcom had filed a preliminary prospectus with the Monetary Authority of Singapore of its arm Global Telecommunications Infrastructure Trust for a public listing in Singapore on July 5.

However, an analyst who asked not to be named said there was no interest in the proposed assets as the Trust being created only had partial assets, and the cash flow proposed by the company for dividend distribution seemed overstated. In its prospectus, Global Trust forecast distributable cash of $145 million and $155 million for 2013 and 2014.

On June 12, the company had received approval from the Singapore Exchange Securities to list its undersea cable network as a trust provided it submitted requisite documents.

The debt-laden company had expected to raise $1.5 billion ( Rs 7,700 crore), by parting with as much as 75% of the submarine cables that were held by Flag Telecom, which is a unit of Reliance Globalcom. The proceeds were to be used to retire high-cost debt.

The assets to be listed were part of Reliance Communications' acquisition of bankrupt Flag in 2004 for $211 million. At the time, it was one of the only companies with cross continental optic fibre cables.

Reliance Communications first spoke of such a listing in 2008, before global markets cascaded in the wake of the global economic crisis. It was one of the company's many possibles for fund raising to retire debt that today exceeds Rs 30,000 crore.