Bharti forms SPVs to execute Zain assets acquisition

26 Mar 2010

1

Bharti Airtel has formed two special purpose vehicles in the Netherlands and Singapore to execute its $9-billion acquisition of Zain's African assets, The Economic Times today reported.

The acquired assets will be owned by the SPVs who will also repay the debt from the cash flows from the African operations. However, in case of a default, Bharti would step in, it said.

On Thursday, Bharti has said it was close to signing a pact for purchase of Kuwait-based Zain group's African assets to gain a foothold in the frontier market at its third attempt.

Earlier on Sunday, Bharti had said it had put in place the entire financing requirement of $8.3 billion of the planned acquisition through a host of banks.

According to the newspaper which cited an identified source familiar with the deal, the $5.5 billion would be routed through the Netherlands entity while the balance would be routed through the

The report also said that Zain agreed to compensate Bharti for legal costs in case of ownership issues over the crucial Nigerian operations, with generate around 36 per cent of its African revenues.

Business History Videos

History of hovercraft Part 3 | Industry study | Business History

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2 | Industry study | Business History

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1 | Industry study | Business History

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | Industry study | Business History

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more
View details about the software product Informachine News Trackers