ID :
113554
Fri, 03/26/2010 - 13:23
Auther :
Shortlink :
https://oananews.org//node/113554
The shortlink copeid
Bharti clinches Zain`s African assets for USD 10.7 bn
New Delhi/Kuwait City Mar 25 (PTI) In a firm indication
of having clinched a mega USD 10.7 billion deal, telecom major
Bharti Thursday announced that it will sign soon "definitive
agreements" to acquire African operations of Kuwaiti firm Zain
and that it has secured funds for it.
With the acquisition, Bharti Airtel will enter the
world's fastest growing market in Africa. The two businesses
combined will have more than 165 million subscribers with
total revenue of USD 13 billion.
"Bharti is now working with Zain towards finalising the
definitive agreements which would address all key terms and
findings arising out of the due diligence," Sunil Mittal-led
market leader said here hours after almost an identical
statement by Kuwaiti firm following its board meeting.
Stating that it has completed due diligence, Bharti said
"definitive agreements are expected to be signed soon. Upon
signing, the parties will move towards obtaining any required
approvals."
The signing of the final deal would fulfil Bharti's
long-standing dream to enter the African market where it had
failed twice in the last years to clinch the acquisition of
MTN.
Following a statement by Zain this morning, Bharti's
stock has surged 3.22 per cent to an intra-day high of Rs
316.70 a share before closing at Rs 313.75.
Analysts generally welcomed the development saying
takeover of Zain's African assets minus Sudan and Morocco
would increase Bharti's profitability on long-term basis.
In a statement, Bharti said that it has already secured
the entire the financial requirement of USD 8.3 billion for
the transaction. On completion, Bharti would be required to
pay another USD 700 million to the seller after a year, while
taking a load of USD 1.7 billion debt associated with the
African assets.
Earlier in the day Zain had said in statement from Kuwait
City that its "Board is pleased to report that due diligence
process has been completed and the parties are finalising
definitive agreements, which are expected to be signed in the
coming days".
Bharti had announced on Sunday that it has tied up funds
from a clutch of foreign and Indian banks. Standard Chartered
Bank has committed the highest amount of USD 1.3 billion
followed by USD 0.9 billion from Barclays.
In all, USD 7.5 billion debt would be dollar-denominated
and the remaining about USD 1 billion will be in rupee loan
from SBI.
Having failed twice to acquire another South African
giant MTN in the last two years, Bharti had been continuously
looking for global acquisitions and the Zain's Board reviewed
the "latest developments and negotiations" on March 24.
Zain further clarified that the sale of 'Zain Africa
BV' would not include operations in Sudan and its investment
in Morocco. PTI
of having clinched a mega USD 10.7 billion deal, telecom major
Bharti Thursday announced that it will sign soon "definitive
agreements" to acquire African operations of Kuwaiti firm Zain
and that it has secured funds for it.
With the acquisition, Bharti Airtel will enter the
world's fastest growing market in Africa. The two businesses
combined will have more than 165 million subscribers with
total revenue of USD 13 billion.
"Bharti is now working with Zain towards finalising the
definitive agreements which would address all key terms and
findings arising out of the due diligence," Sunil Mittal-led
market leader said here hours after almost an identical
statement by Kuwaiti firm following its board meeting.
Stating that it has completed due diligence, Bharti said
"definitive agreements are expected to be signed soon. Upon
signing, the parties will move towards obtaining any required
approvals."
The signing of the final deal would fulfil Bharti's
long-standing dream to enter the African market where it had
failed twice in the last years to clinch the acquisition of
MTN.
Following a statement by Zain this morning, Bharti's
stock has surged 3.22 per cent to an intra-day high of Rs
316.70 a share before closing at Rs 313.75.
Analysts generally welcomed the development saying
takeover of Zain's African assets minus Sudan and Morocco
would increase Bharti's profitability on long-term basis.
In a statement, Bharti said that it has already secured
the entire the financial requirement of USD 8.3 billion for
the transaction. On completion, Bharti would be required to
pay another USD 700 million to the seller after a year, while
taking a load of USD 1.7 billion debt associated with the
African assets.
Earlier in the day Zain had said in statement from Kuwait
City that its "Board is pleased to report that due diligence
process has been completed and the parties are finalising
definitive agreements, which are expected to be signed in the
coming days".
Bharti had announced on Sunday that it has tied up funds
from a clutch of foreign and Indian banks. Standard Chartered
Bank has committed the highest amount of USD 1.3 billion
followed by USD 0.9 billion from Barclays.
In all, USD 7.5 billion debt would be dollar-denominated
and the remaining about USD 1 billion will be in rupee loan
from SBI.
Having failed twice to acquire another South African
giant MTN in the last two years, Bharti had been continuously
looking for global acquisitions and the Zain's Board reviewed
the "latest developments and negotiations" on March 24.
Zain further clarified that the sale of 'Zain Africa
BV' would not include operations in Sudan and its investment
in Morocco. PTI
