Dubai-based Oger Telecom may take over a 25% stake and the management of ailing telecoms incumbent Vivacom this month, according to media reports.
The investment company is reportedly not expected to pay much for the stake but would instead take on…
Dubai-based Oger Telecom may take over a 25% stake and the management of ailing telecoms incumbent Vivacom this month, according to media reports.
The investment company is reportedly not expected to pay much for the stake but would instead take on Vivacom’s bank loans, which are estimated to be worth E1.3bn. It may also acquire the option to buy a majority stake within a year.
Oger Telecom is the emerging markets focused telecoms arm of conglomerate Saudi Oger, which is owned by the Lebanese Hariri family. It holds 55% of Turk Telekom, 75% of South African mobile operator Cell C and 95% of Middle Eastern ISP Cyberia.
Vivacom underwent a restructuring of its debt pile after breaching agreements in June 2010. The operator appointed Lazard to restructure its debt, while junior lenders selected Houlihan Lokey.
In October last year, senior creditors signed a lock-up agreement with Oger Telecom and mezzanine creditors, which together hold E325m of Vivacom’s debt.
Hong Kong-based businessman Richard Li took over Vivacom in March 2010 when he acquired AIG Investments, which was then renamed Pinebridge. AIG bought the telecoms incumbent in 2008 from Advent International.
Deutsche Bank, RBS and UBS arranged the E1.635bn debt package that supported AIG Capital Partners’ acquisition of Vivacom.
