Ico Global Comm Plans $600m Rights

ICO Global Communications the 12-satellite global mobile personal communication services system plans to come out with a $500-600 million (Rs 1,800-2,160 crore) rights issue in a few months.

This will increase the companys equity from $1.52 billion to about $2.1 billion, ICO executive vice-president Jai Singh said.

The proceeds of the rights issue will be used to set up satellite access nodes (SANs), finance development of satellites and handsets, besides meeting other project costs.

ICO currently has 47 investors, consisting of telecom and technology companies from 44 countries.

Videsh Sanchar Nigam Ltd, Indias international telecom services carrier, holds seven per cent of the ICO equity of $107 million.

This stake is expected to go up to about $150 million after the rights issue.

The Indian company has a position on the ICO board of directors.

B K Syngal, chairman and managing director of VSNL is vice-chairman of the satellite telephony company. Other large investors in ICO include Deutsche Telekom and Hughes Electronic Corp.

The first ICO satellite is expected to be launched in the fourth quarter of 1998 and the first constellation of six satellites will be in orbit by end-1999, Singh said.