Dec. 1 (Bloomberg) -- Royal Group of Cambodia Ltd., owner of the country’s biggest mobile-phone company, hired Standard Bank Group Ltd. and Australia & New Zealand Banking Group Ltd. to arrange a $421 million loan.
The 18-month bridging loan will help Phnom Penh-based Royal Group acquire the Cambodian wireless network operations of its partner, Millicom International Cellular SA, for $346 million. It will also be used to refinance debt of about $100 million, Royal Group Chief Financial Officer Mark Hanna said.
“For a local company to raise this much in this climate is quite incredible,” Hanna said in a phone interview from Phnom Penh. “There have only been three or four syndicated loans done in Cambodia and nothing of this magnitude.”
Royal Group, whose aim according to its Web site is to promote the country’s economic development, owns a television network and has telecommunications, media and hotel investments in Cambodia. It owns a casino close to the border with Vietnam, as well as a joint venture to open the country’s first six-star resort in Siem Reap. Luxembourg-based Millicom has been selling its telecommunications assets in Asia, including its Sri Lanka unit for about $155 million in October.
The loan may pay interest of between 10 percent and 14 percent and will be put out for general syndication either later this month or early next year, one person familiar with the transaction said.
To contact the reporter on this story: Katrina Nicholas in Singapore at knicholas2@bloomberg.net; Shelley Smith in Hong Kong at ssmith118@bloomberg.net
The 18-month bridging loan will help Phnom Penh-based Royal Group acquire the Cambodian wireless network operations of its partner, Millicom International Cellular SA, for $346 million. It will also be used to refinance debt of about $100 million, Royal Group Chief Financial Officer Mark Hanna said.
“For a local company to raise this much in this climate is quite incredible,” Hanna said in a phone interview from Phnom Penh. “There have only been three or four syndicated loans done in Cambodia and nothing of this magnitude.”
Royal Group, whose aim according to its Web site is to promote the country’s economic development, owns a television network and has telecommunications, media and hotel investments in Cambodia. It owns a casino close to the border with Vietnam, as well as a joint venture to open the country’s first six-star resort in Siem Reap. Luxembourg-based Millicom has been selling its telecommunications assets in Asia, including its Sri Lanka unit for about $155 million in October.
The loan may pay interest of between 10 percent and 14 percent and will be put out for general syndication either later this month or early next year, one person familiar with the transaction said.
To contact the reporter on this story: Katrina Nicholas in Singapore at knicholas2@bloomberg.net; Shelley Smith in Hong Kong at ssmith118@bloomberg.net
7 comments:
How much the tax department in Cambodia make money from this sale transaction? I guess "zero". This is how competent the Cambodian tax authority.
Out of the US$346million sale proceeds, how much the Millicom make profit from its initial investment. Don't forget that capital gain is taxable in Cambodia. They make profit for at least US$200 millions. If so, with the tax rate at 20%, tax amount of US$40 million is lost.
Now this imcompetent government with their corrupt and arrogent officers are trying to getting small fish by imposing tax on people's house and land which they expect to make around $10 mllions only per year.
Many other transactions which the current tax department could not collect tax. There are a number of Merger and Acquisition in Cambodia.
Don't worry the Royal Group will file bankscruptcy in the near future. There're no market for them in Cambodia and they keep expand their business until it explodes. If one has money deposit with the Royal Group, they should take it out.
stop your campaign of destroying each other. good people do not talk hatred to begin with. no one is perfect but everyone got a job to do. let's the appropriate institution do their jobs to enforce it.
stop your campaign of destroying each other. good people do not talk hatred to begin with. no one is perfect but everyone got a job to do. let's the appropriate institution do their jobs to enforce it.
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What a shame!
Why Khmer people cannot help Khmer people???
In Cambodia it is the same like in USA or other countries.
Khmer people do not help Khmer people.
Compare this with Vietnamese people. They always help each other in USA or elsewhere.
What a shame for Khmer people.
Why people from other countries look down to them?
Think about it.
2:49 AM
you're right. I'm Khmer but I know that many ah sart Khmer likes to see other Khmer suffer because that makes them feel better about themselves or something. What a bunch of douchebags! Many Khmer in the US love to talk shit and look down on Khmer in Cambodia even though some of them are living off the US government welfare checks and the people they love to mock are way better off than them. What an irony!
That being said of those dickholes, there are many other Khmer who love Khmer. Those people I like.
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