ID :
126856
Wed, 06/09/2010 - 07:12
Auther :
Shortlink :
https://oananews.org//node/126856
The shortlink copeid
Bharti completes acquisition of Zain's Africa biz for $10.7 bn
New Delhi, Jun 8 (PTI) In the largest ever telecom
takeover by an Indian firm, Bharti Airtel on Tuesday completed
a deal to buy Kuwait-based Zain Telecom's African business for
USD 10.7 billion (about Rs 48,000 crore).
Announcing the closure of the deal, Sunil Mittal said,
"We are delighted at the closure of this transformational deal
for India and Bharti Airtel. The transaction is the largest
ever cross-border deal in an emerging market and will result
in combined revenues of about USD 13 billion."
On March 30, 2010, Bharti had entered the deal to acquire
Zain Telecom's operations in 15 nations, excluding Sudan and
Morocco. Zain has operations in 17 African countries.
The closure of the deal implies that Bharti has received
all the approvals from the governments and regulators of each
of these 15 nations.
This acquisition, besides giving Bharti its much-desired
presence in Africa, makes it the world's fifth largest
wireless company with operations across 18 countries and a
subscriber base of around 179 million.
Bharti had failed twice in the last two year's to forge
an USD 23 billion merger deal with South African telecom giant
MTN.
The Zain acquisition, the second largest by an Indian
entity after Tatas' Corus deal, would take the revenue of the
combined entity to an estimated USD 13 billion.
The African business would widen Bharti's reach, which
was hitherto restricted to Asia and the Indian Ocean region
with businesses in Sri Lanka, Bangladesh and Seychelles.
Of the USD 10.7 billion enterprise value of Zain, Bharti
will be paying USD 8.3 billion upfront and USD 700 million
after a year. It would also take over approximately USD 1.7
billion of Zain's debts as on December 31, 2009.
Of the USD 8.3 billion paid to Zain, Bharti has raised
debt from a consortium of foreign banks and State Bank of
India with the lead-arranger and lead-advisor Standard
Chartered Bank committing the highest amount -- USD 1.3
billion, followed by Barclays at USD 900 million.
The rest of the co-advisors -- ANZ, BNP, Bank of
America-Merrill Lynch, Credit Agricole CIB, DBS, HSBC, Bank of
Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation
-- have allocated USD 600 million each.
State Bank of India has agreed to an up to USD one
billion loan in rupee terms. PTI PML
RBT
takeover by an Indian firm, Bharti Airtel on Tuesday completed
a deal to buy Kuwait-based Zain Telecom's African business for
USD 10.7 billion (about Rs 48,000 crore).
Announcing the closure of the deal, Sunil Mittal said,
"We are delighted at the closure of this transformational deal
for India and Bharti Airtel. The transaction is the largest
ever cross-border deal in an emerging market and will result
in combined revenues of about USD 13 billion."
On March 30, 2010, Bharti had entered the deal to acquire
Zain Telecom's operations in 15 nations, excluding Sudan and
Morocco. Zain has operations in 17 African countries.
The closure of the deal implies that Bharti has received
all the approvals from the governments and regulators of each
of these 15 nations.
This acquisition, besides giving Bharti its much-desired
presence in Africa, makes it the world's fifth largest
wireless company with operations across 18 countries and a
subscriber base of around 179 million.
Bharti had failed twice in the last two year's to forge
an USD 23 billion merger deal with South African telecom giant
MTN.
The Zain acquisition, the second largest by an Indian
entity after Tatas' Corus deal, would take the revenue of the
combined entity to an estimated USD 13 billion.
The African business would widen Bharti's reach, which
was hitherto restricted to Asia and the Indian Ocean region
with businesses in Sri Lanka, Bangladesh and Seychelles.
Of the USD 10.7 billion enterprise value of Zain, Bharti
will be paying USD 8.3 billion upfront and USD 700 million
after a year. It would also take over approximately USD 1.7
billion of Zain's debts as on December 31, 2009.
Of the USD 8.3 billion paid to Zain, Bharti has raised
debt from a consortium of foreign banks and State Bank of
India with the lead-arranger and lead-advisor Standard
Chartered Bank committing the highest amount -- USD 1.3
billion, followed by Barclays at USD 900 million.
The rest of the co-advisors -- ANZ, BNP, Bank of
America-Merrill Lynch, Credit Agricole CIB, DBS, HSBC, Bank of
Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation
-- have allocated USD 600 million each.
State Bank of India has agreed to an up to USD one
billion loan in rupee terms. PTI PML
RBT
