Bharti Airtel clinches $10.7-billion Zain deal
24 Mar 2010
Bharti Airtel is set to seal a $10.7 billion deal to acquire the African assets of Kuwaiti telecom company Zain, with the board of directors today approving the transaction.
Under the deal, Bharti Airtel will acquire most of the African assets of Zain for a consideration of $9 billion. Bharti will also assume $1.7 billion debt on Zain's books.
Bharti has completed the due diligence for the acquisition, which will extend the Indian telecom major's reach into the African markets.
Sunil Mittal-led Bharti, which twice lost its bid to merge with South Africa-based MTN, will now get access to 15 African countries at one go.
Bharti Airtel is also believed to have overcome the hurdles posed by an ownership issue over Zain's Nigerian assets.
Zain Nigeria and South Africa-based Econet Wireless Holdings - a minority shareholder - were locked in a dispute that complicated the Bharti group's third attempt to enter the African market.
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