Dechert Advises TeliaSonera on Asian Expansion
October 7,
2008
Global law firm Dechert LLP advised Scandinavian telecoms giant TeliaSonera on its acquisition of controlling interests in two Asian mobile operators, Spice Nepal Private Limited of Nepal and Cambodia's Applifone Co Limited.
TeliaSonera has acquired 51 percent of the shares and votes in TeliaSonera Asia Holding B.V. from Visor Group, a Kazakhstan-based diversified investment and advisory firm established in 2001 with significant regional investment expertise and assets under management, that will remain owner of the other 49 percent of the company. TeliaSonera Asia Holding B.V. owns 80 percent of the shares and votes in Nepalese mobile operator Spice Nepal and 100 percent of the shares and votes in Applifone, a start-up mobile operator in Cambodia. The total cash consideration paid by TeliaSonera is approximately SEK 3.2bn (US$484m), corresponding to 51 percent of the total equity value of TeliaSonera Asia Holding B.V.
Spice Nepal launched its operation in September 2005 and is the second largest mobile operator in the country, with around 1.6m subscriptions and an estimated market share of approximately 41 percent as of August 2008. Spice Nepal's net sales in 2007 and for the first six months of 2008 were US$41.1m and US$34.1m respectively, and EBITDA, excluding non-recurring items, was US$19m and US$18.2m, respectively. Mobile penetration in Nepal, with a population of 28.4m, is approximately 13 percent.
Applifone launched its operation in October 2007 and is the fourth largest mobile operator in Cambodia, with some 97,500 subscriptions and an estimated market share of approximately 3 percent as of August 2008. Mobile penetration in Cambodia, with a population of 14.6m, is approximately 21 percent.
One of TeliaSonera's top priorities is to grow its business across Eurasia, building upon their successes of the past ten years. This acquisition represents an important step forward in executing the strategy to expand into new high-growth emerging markets, following similar successful investments in Uzbekistan and Tajikistan.
The Dechert team advising TeliaSonera was led by corporate partner Joseph Aragonés, assisted by associates Anthony Paronneau (Paris) and James Stonehill (London).
Visor Group was advised by team from Houthoff Buruma N.V led by Andre de Neve, assisted by Yvo van Bijsterveld, Floris Koopman and Tim Vermeulen.
Contact:
Will Salomone
will.salomone@dechert.com
+44 (0)20 7184 7573
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