NEW YORK-Montreal-based Telesystem International Wireless Inc. announced April 29 that Dolphin Telecom plc, its London-based subsidiary, raised $210 million in private equity to help finance the rollout of an enhanced specialized mobile radio network in Europe.
The company also began a road show last week to privately place an additional $200 million of debt securities, a Rule 144A offering of senior discount notes that is expected to take place by mid-May.
The stock sale is significant for several reasons, said a banker close to the deal who spoke on condition of anonymity. To date this year, the Dolphin private equity offering is the largest such transaction by a European telecommunications carrier. Normally, stock sales of this size take place in the public rather than the private capital markets.
Furthermore, he said, investor enthusiasm came from Europe, the United States and Canada, demonstrating not only the globalization of capital but also the success of two other ESMR providers, Nextel Communications Inc. and Clearnet Communications Inc.
“We are very pleased with the response from major institutional investors confirming the unique position and value of Dolphin in Western Europe,” said Yves Marois, president-Europe for TIW and chairman of Dolphin.
“Combined with existing cash resources and financings, Dolphin now is fully funded to build out its ESMR networks in the United Kingdom and Germany, is funded well into 2000 for network deployment in France and now has the initial funding for its Belgium ESMR project.”
Bear, Stearns & Co. Inc., New York, acted as placement agent for the private offering of Class A ordinary shares of voting stock. The sale represented an equity participation of about 20.2 percent of the company. TIW retained a 78-percent stake in Dolphin at the close of the sale.
Dolphin plans to launch commercial ESMR service in the United Kingdom and France later this year and in Germany during the first half of next year. It also has ESMR licenses in Portugal and Belgium.
At present Dolphin has 300,000 specialized mobile radio customers in these countries and in Spain.
