BHARTI AIRTEL ZAIN ACQUISITION PDF

Bharti Airtel has completed the acquisition of Zain Telecom’s Africa operations for US$bn. Read more about Bharti Airtel completes acquisition of Zain on Business Standard. In the largest ever telecom takeover by an Indian firm, Bharti. Bharti had a very low “Net Debt to Equity Ratio” of at the end of Dec., which means that it was virtually a debt free company It is good.

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A third banker said the deal could be in two steps—the first involving the buyout of the African operations as well as a small stake in Zain itself.

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, aietel market conditions are similar. The acquisition gives Bharti Airtel a total customer base of million, including million subscribers it had in India at the end of April.

Bharti to acquire % of Zain’s African operations: Sources – The Economic Times

After twice wooing but failing to clinch a merger with South Africa’s MTN, Bharti’s ambitions to enter into vast African market has now been fulfilled. State Bank of India has agreed up to one billion acquisitino loan in rupee terms. Crude bharri prices to direct sugar prices in Special Correspondent New Delhi, June 08, We believe we have acquired a promising asset and the long-term growth fundamentals of the market are intact. The Zain deal would also catapult the Indian entity into the league of world’s top 10 telecom players.

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Never miss a great news story! Bharti Airtel dials Zain. Please Email the Editor. NIFTY 50 10, 2. The company has now million subscribers in acquisihion Asian and African nations. 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 aitrel entirely by cash or be a part-cash and part-share deal.

Airtel Africa says IPO plans on track. 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.

Arpu is a key yardstick for telcos. He said Zain Africa would now be per cent subsidiary of Bharti International. Fill in your details: This article is closed for comments. Announcing the deal, Sunil Mittal said, “This agreement is a landmark for global telecom industry and game changer for Bharti. In MTN’s case, we would have had board control but no management control and no change in brand.

Asked whether he regretted missing a deal with MTN twice and whether that was his first choice, Mr. Bharti Airtel has long been looking to expand into African market but was unable to do so.

Bharti Airtel to close Zain Africa deal soon. This one Indian innovation could transform Africa. It seemed like a good idea at the time.

Five years on, Airtel’s Africa business still off target

Tariffs in Africa were around 10 cents a minute, compared with the less than 1 cent per minute in India. At the end of the March quarter—the target the company had set for itself—Airtel had Bharti has operations in Sri Lanka, and also acquired a majority stake in Warid Telecom, the fourth largest operator in Bangladesh.

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Your Reason has been Reported to the admin. The minute factory model works when the volumes of calls are already there, which they did not have. Bharti-Zain deal Stock quote: Mon, Jun 08 Zain had not invested much in key acqujsition such as brand and network, which made integration more difficult. Mittal stating that in the Zain’s case Airtel would have a total control.

For Bhartj, Airtel could also leverage its existing relationships in India to get deals for equipment, network management and IT infrastructure. Zain has operations in 17 countries in the region and is claiming to be the second largest operator after MTN. By haircut, he was referring to the extent that Bharti would be willing to cut its losses.

Read more on Bharti Airtel. The Thomson Reuters Trust Principles.

Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. The transaction, which excludes Zain’s operations in Sudan and Morocco, may, however, pose challenges to Mittal in terms of turning around Zain’s under-performing networks, particularly in Nigeria, the Kuwaiti company’s most important market. Related Articles Bharti Airtel readying funds for Zain deal. Telecom News Telecom Policy.