Bharti Airtel, India’s largest mobile telecoms operator and the Zain Group of Kuwait are expected to sign a $9 billion dollar deal for the sale of Zain's African assets Today  According to agency reports, the signing ceremony is expected to take place in Amsterdam, headquarters of Zain.


The Chairman of Zain, Asaad al-Banwan and Bharti Chairman Sunil Mittal are both expected to be present at the signing ceremony, after which they will work towards getting required approvals to cement the deal. The Board of Zain Group had last Thursday confirmed that the Board of Directors of Zain met in Kuwait to  review developments and negotiations related to the acquisition of Zain African assets by Bharti. 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.


The speedy process leading to the signing, underscores the importance of the deal to both parties. Bharti which had for long desired a foothold into Africa had tried and failed to access Africa through the MTN group twice.
Bharti has already sourced USD 8.3 billion financing for the acquisition of the African assets which does not include Zain’s operation in Sudan or Morocco.


Today’s signing will facilaitate Zain’s acquisition by Bharti and will create the seventh largest telecoms firms in the world.
Zain had acquired Celtel International for $3.4 billion in 2005 to expand into 13 African countries, including Nigeria. In the past, Zain Nigeria has traded under various brands since 2001 due to a series of boardroom conflicts that had seen it metamorphorsize into Vee Networks, Vmobile, Celtel, Zain Nigeria and now possibly Bharti Airtel.


The acquisition, if succeesfully signed today will face opposition in the Nigerian and Gabonese side as the Gabonese government is said to disapprove of the deal and likely to take necessary measures against it. 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.

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.   Masiyiwa’s position is based on the ownership dispute currently ongoing between Econet Wireless and Zain formerly Celtel. Masiyiwa reiterated immediately after talks between both parties began that Zain Nigeria will not be part of the acquisition by Bharti until the ownership dispute is resolved.
A member of the Presidential Advisory Committee, Maryam Uwais also called on leaders to entrench a free and fair election, intensify its war against corruption Bharti Airtel, India’s largest mobile telecoms operator and the Zain Group of Kuwait are expected to sign a $9 billion dollar deal for the sale of Zain's African assets Today  According to agency reports, the signing ceremony is expected to take place in Amsterdam, headquarters of Zain.


The Chairman of Zain, Asaad al-Banwan and Bharti Chairman Sunil Mittal are both expected to be present at the signing ceremony, after which they will work towards getting required approvals to cement the deal.
The Board of Zain Group had last Thursday confirmed that the Board of Directors of Zain met in Kuwait to  review developments and negotiations related to the acquisition of Zain African assets by Bharti. 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.


The speedy process leading to the signing, underscores the importance of the deal to both parties. Bharti which had for long desired a foothold into Africa had tried and failed to access Africa through the MTN group twice.
From: THISDAY Online

Tweet

Share

0