>>> ATC to acquire 723 telecommunications towers from Telkom Kenya

ATC to acquire 723 telecommunications towers from Telkom Kenya
07 MAY 2018
Telkom Kenya, which is 60% owned by Helios Investment Partners and 40% by the Government of Kenya, have reached a definitive agreement to sell 723 telecommunication towers in Kenya to Boston, Massachusetts-based American Tower Corporation (ATC) [NYSE:AMT], the seller said in a statement.
The deal value has not been disclosed.
The transaction is expected to close in the second half of 2018, subject to customary closing conditions and regulatory approval, it added.
Press release:
Integrated telecommunications service provider, Telkom Kenya (TKL) and global tower company, American Tower Corporation (ATC) today (07 May) announced that they have reached a definitive agreement for ATC to acquire up to 723 towers from TKL in Kenya.
Telkom Kenya’s Board Chair, Eddy Njoroge stated that TKL was delighted to have signed the agreement with ATC and looked forward to a close collaboration between the two companies. “The Board of TKL has made it clear that our objective is to transform Telkom into a business which has a reputation for excellence in terms of the quality and reliability of its network. This agreement, in which we will be partnering with a leading global tower company, will enhance the quality and reliability of our network to the benefit of our customers.”
William H. Hess, ATC President of EMEA and Latin America stated, “We are excited to announce the launch of operations in Kenya through our agreement to acquire TKL’s towers. This represents American Tower’s 17th market globally, and our fifth in Africa, and we look forward to helping expand the reach of mobile broadband throughout the country. Kenya is a very attractive market, and we have high expectations for its long-term growth potential.”
Aldo Mareuse, CEO of TKL, added: “The network availability and service levels we have agreed with ATC are world class and this agreement represents another important step towards the transformation of this business and the service levels we deliver to our customers. Telkom will now focus on its core function – the provision of quality telecommunications services to our customers. In addition, the sale will release capital for further investment in our 4G network and a number of state of the art IT platforms, all of which will further enhance services for our customers as they demand higher quality and speed from our mobile data networks as well as a richer range of services.”
The transaction is expected to close in the second half of 2018, subject to customary closing conditions and regulatory approval.

>>> Formula E chief executive makes bid of EUR 600m to acquire company’s full ow

Formula E chief executive makes bid of EUR 600m to acquire company’s full ownership
07 MAY 2018
Alejandro Agag, the chief executive and founder of Formula E (the UK-based electric racing car series), has offered EUR 600m to acquire the company’s full ownership, according to a newswire report. A spokesperson for Formula E confirmed that Agag had conveyed his plans in writing to the company’s board of directors, Reuters reported on 4 May 2018.
The website motorsport.com published excerpts from Agag’s letter, the report noted, and added that the Florida-based Motorsport Network, the owner of motorsport.com, had acquired an undisclosed Formula E stake last year.
The Maryland-based Discovery Communications [NASDAQ:DISCA], Liberty Global [NASDAQ:LBTYA] and Nico Rosberg (the champion of Formula One racing in 2016) are among the shareholders Formula E, the item noted.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

  • TSEM -15.8%, XRAY -6%, CBPO -3.6%, IFF -3.6%, TSN -3.5%, LPX -2.9%, CTSH -2%, TLRA -1%, URG -0.7%

Select metals/mining stocks trading lower:

  • SBGL -7%, MUX -2.4%, DRD -2%, AU -1.1%

Other news:

  • GNRT -5.7% (Gener8 Maritime Audit Committee concluded financial statements for the fiscal 2017 year should be restated and should no longer be relied upon because of certain errors)
  • EBIO -1.6% (files for 7,968,128 share common stock offering issuable upon exercise of outstanding warrants by selling stockholders)
  • DB -1.1% (continued weakness)

Analyst comments:

  • FLIR -1% (downgraded to Hold from Buy at Drexel Hamilton)
  • ETN -1.5% (downgraded to Underweight from Equal Weight at Barclays)
  • SHAK -2.4% (downgraded to Underweight from Neutral at JP Morgan)
  • SMLP -5.5% (downgraded to Market Perform from Outperform at Wells Fargo)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:

  • NOG +14.3%, CRNT +5.9%, TA +5.5%, ARQL +3.8%, ILMN +1.7%, BWXT +1.1%, BRK.B +0.4%

M&A news:

  • MDLZ +0.5% (to acquire Tate's Bake Shop for approximately $500 mln)

Other news:

  • NVAX +4.3% (reaches enrollment milestone of ~4,600 participants in Prepare Phase 3 trial of RSV F Vaccine)
  • WFC +1.5% (reaches agreement in principle to resolve consolidated securities fraud class action)
  • VRX +1.3% (FDA has approved PLENVU)

Analyst comments:

  • BILI +2.1% (initiated with a Overweight at JP Morgan)
  • CVRR +2% (upgraded to Buy from Neutral at Goldman)
  • ILMN +1.7% (upgraded to Overweight from Equal Weight at Barclays)
  • DE +1.6% (upgraded to Outperform from In-line at Evercore ISI)
  • CLDR +1.5% (initiated with a Buy at Craig Hallum)
  • MCD +1.2% (added to Conviction Buy List at Goldman)
  • AZO +0.8% (added to Conviction Buy List at Goldman)
  • AMZN +0.5% (initiated with a Outperform at Telsey Advisory Group)

>>> US Early premarket gappers

Early premarket gappers

Gapping up:

  • CRNT +5.9%, MSCC +3.1%, LOGI +1.8%, STM +1.8%, UAA +1.7%, MDLZ +1.5%, ERIC +1.4%, NKTR +1%, GE +0.7%

Gapping down:

  • TSEM -16%, SBGL -6.4%, FCRE -4.8%, XRAY -3.2%, MUX -2.4%, DRD -2%, SHAK -1.7%, EYPT -1.6%, SMLP -1.6%, AU -1.1%, TRVN -0.9%, DB -0.8%

FT : Access to energy is an essential step in African development

Access to energy is an essential step in African development
Investment in infrastructure can unlock the continent’s potential but is far too low

The need for investment in energy supplies and associated infrastructure in Africa can hardly be overstated. There are some 1.25bn Africans. By 2050 that is set to increase to more than 2bn, with Africa accounting for more than half of global population growth. By then, Nigeria alone will have more than 300m citizens.

The continent has great economic potential. Some countries, such as Ghana, Ethiopia and Côte d’Ivoire, already have economic growth rates of more than 6 per cent a year. Others, like South Africa and Zimbabwe, have new leadership focused on replacing the corruption of the past with modern, competitive economic structures. But there are still almost 600m Africans living in subsistence conditions without access to electricity according to the International Energy Agency, and many more still living on the edge of poverty.

Secure, low-cost energy supplies (and the grids and pipelines to get them to the end users) are essential but current investment levels are far too low. The IEA estimates that investment of more than $1.5tn will be needed between now and 2050 in the power sector alone. Projects needed range from power stations and electricity grids to much smaller, but still crucial, off-grid supplies to more isolated locations.

Access to energy provides the first step in the ladder of development — without heat, light or mobility there is little chance of an escape from poverty.

But the private sector regards much of Africa as dangerous and companies can be overwhelmed by the challenges of security and corruption. Parts of the continent represent a very high risk environment that many simply choose to avoid.

That is one good reason why the board of the European Bank for Reconstruction and Development, meeting this week in Jordan, should agree to extend its activity into sub-Saharan Africa.

A development bank cannot do everything but it can set an example and encourage private investors to take risks that they would not take on their own. By setting good standards the bank can help improve the reputation of countries in the international capital markets as it has done in parts of eastern Europe and elsewhere over the last 27 years.

But there is another factor that the EBRD should take into account. Africa — particularly to the north and south of the Sahara — is particularly vulnerable to the effects of climate change. An excellent but frightening study published by the Max Planck Institute describes the prospect of north Africa becoming uninhabitable as temperatures rise, water supplies dry up and the possibility of growing crops is reduced.

If an area becomes uninhabitable people move. The migrant route through Niger to the north African coast is already well defined as the main transit route for those trying to escape conflict or harsh local conditions. The obvious destination for the migrants is still Europe — despite the physical risks involved, the introduction of naval patrols in the Mediterranean and the prospect of spending years in camps in Turkey or on the Greek islands.

More than 1.25m migrants arrived in Europe in 2015. The decision by the German Chancellor Angela Merkel to accept more than 1m refugees undermined her authority, while in eastern Europe the prospect of growing numbers of migrants has fuelled a resurgence of racial discrimination and nationalism. The flow has since then been limited. But if substantial areas of Africa become uninhabitable then what has happened over the past five years could become the norm.

Investment in energy and infrastructure across Africa cannot on its own solve the whole of that problem — but it could help. Projects to manage water supplies are crucial and depend on the availability of energy supplies. Well-targeted investment could encourage the development of areas less likely to be harshly affected by climate change. Low-cost energy supplies, including the use of the latest solar power technology, can give communities the chance to adapt and prepare against growing risks.

It is hard to think of a better use for the EBRD’s skills and resources.