According to Kommersant, Dalsvyaz agreed for an indefinite time to abandon the idea of selling its mobile assets. Before the crisis, the business was valued at $ 200 million, and applications for the purchase of assets exhibited three largest Russian mobile operator. Now the implementation of the deal could bring us more problems than income – would require a reorganization of the share buy-back from dissenting minority shareholders at a price significantly higher than current market price of the shares, as well as early repayment of bank loans. As far as we know, leaflets of two issues of ruble bonds do not contain the Covenant on the alienation of the assets of the subsidiaries, so the possibility of early repayment of the bondholders in any case does not appear to.
The sale of the cellular business, we evaluated as a positive event for the solvency of the issuer, but already in October last year (see our daily for 14 October), it became clear that plans for the operator is not destined to materialize in the next few months. Then the deal was delayed until June 2009
During the past year Dalsvyaz reduces the debt burden, therefore, looks better than most other LDCs. According to reports on RAS, Dalsvyaz total debt at the end of 2008 amounted to 5.6 billion rubles. On short-term debt accounted for 2.5 billion rubles. Debt / EBITDA to the outcome in 2008 was just 1.3X, with EBITDA margin at 34%.
At the moment there is no vendor in the market of ruble bonds Dalsvyaz, and the number of Dalsvyaz-3 extinguished through the month. Compared with the ITT praysingom-4, as well as recent locations in Moscow and Gazprom Neft current yield bonds MRK so far no interest.
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Categorized | M&As in Telecom
Dalsvyaz postpones sale of mobile assets
Posted on 01 June 2009