Airtel’s acquisition of zain in africa. 1. Annexure-V- Cover Page for Academic Tasks Course Code: MGT Course Title: Corporate. NEW DELHI/MUMBAI: The board of Kuwait’s Zain Telecom has accepted a $ -billion (Rs 49, crore) offer from Bharti Airtel for the bulk of. Mittal’s firm Bharti Airtel had ventured in Africa market with USD billion (or about Rs 48, crore at that) acquisition of Kuwait-based Zain.

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Bharti Airtel completes Zain acquisition – The Hindu

Also, the deal on the Nigerian side might likely face hiccups following the declaration of the Chief Executive Officer of Econet Strive Masiyiwa that Zain Nigeria is not for sale. State Bank of India has agreed up to one billion dollar loan in rupee terms. Special Correspondent New Delhi, June 08, Bharti finally entered Africa after aborting negotiations twice for merger with MTN sincewith Mr.

This one Indian innovation could transform Africa. This deal would signal many new investments that would go to Africa, he added.

Bharti Airtel completes Zain acquisition

Printable version Jan 1, 4: If the deal fructifies, the acquisition will give Bharti a firm foothold in a relatively untapped market and pit it in direct competition with MTN, with which it has tried and failed to merge twice. The government of Gabon was said to have said in a statement emphasised that the Zain Gabon had not complied with Gabonese telecommunications regulations with regard to the acquisition. As operators in India have shown, achieving a minimalist cost structure is the best foundation an operator in an emerging market can have.

Bharti Airtel acquires Zain Africa. Drag according to your convenience. Read more on Bharti Airtel.

Asked whether he regretted missing a deal with MTN twice and whether that was his first choice, Mr. This will alert our moderators to take action Name Reason for reporting: This will alert our moderators to take action Afruca Reason for reporting: Get instant notifications from Economic Times Allow Not now.


The acquisition, the second largest by an Indian entity after Tatas’ Corus deal, would make Sunil Mittal-led Bharti the world’s seventh largest mobile operator with a total subscriber base of about million. Another banker with knowledge of the deal said Bharti is likely to maintain flexibility on payment depending on how the talks progress—it could be financed entirely by cash or be artel part-cash and part-share deal.

Voice calls were earlier charged by the minute. Choose your reason afirca and click on the Report button.

The speedy process leading to the signing, underscores the importance of the deal to both parties. A new investment that is coming up for the company is the roll out of 3G services once spectrum o allotted to it by the government by September this year.

Your Reason has been Reported to the admin. Fill in your details: It had revealed that following the conclusion of due diligence processes, both parties were finalizing definitive agreements expected to be signed in a few days. Never miss a great news story!

To see your saved avrica, click on link hightlighted in bold. Bharti has already sourced USD 8. Bharti has maintained complete silence since the news broke while all Zain said in a statement on Sunday was its board would discuss an offer, but said nothing about the identity of the suitor.

A challenge for Bharti Airtel will be to integrate the operations of Zain Africa in all 15 countries, which currently operate largely as stand-alone units, said Kamlesh Bhatiaa principal research analyst at Gartner. Bharti Airtel to close Zain Africa deal soon. Zain is the second largest operator and that is the only difference. In a recent interview with ET, Mittal said that the company would look at consolidation in countries like Kenya, Rwanda and Tanzania, through mergers, acquisitions or both, even as the overall Africa business was turning a corner.

Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. The operations spread across 15 African countries that Bharti is seeking to buy are grouped under an entity called Zain International.


Representatives from both companies were not available for comment. We are looking at more opportunities as we build more roll outs in Africa,” he remarked.

India’s Bharti Airtel completes acquisition of Zain Africa | Reuters

On the Airtel Payments BankMittal wfrica that bank was meant for financial inclusion, especially for those who have not used banking services in the past, and zwin opportunity to scale it in India was very big. Bharti Airtel is also looking outside India to boost its margins, as the Indian market has become very competitive, with voice call rates sometimes as low as 0. In MTN’s case, we would have had board control but no management control and no change in brand.

Romal Shetty, who heads the telecom practice at KPMG, said the valuation may appear slightly stretched right now, but Airtel needs a foothold in Africa. My Saved Articles Sign in Sign up. The Thomson Reuters Trust Principles.

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At the end of September, it had total debt of Rs 91, crore. India should flex muscle in face of US protectionism: A banker familiar with the situation said the acceptance of the offer clears the way for Bharti to carry out a due diligence of the business before a final deal. Mr Shetty was also of the view that being a pioneer of the low-cost, outsourced model of operations, Bharti can replicate it in Africa, where market conditions are similar.

Masiyiwa reiterated immediately after talks between both airrel began that Zain Nigeria will not be acquisitioon of the acquisition by Bharti until the ownership dispute is resolved.