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 Tuesday, June 15, 2010

India’s Bharti Airtel has announced that it has finalised the acquisition of the African assets of Kuwait-based Zain Group, with the deal valued at USD10.7 billion, the Economic Times reports. Under the terms of the deal, first announced in March 2010, Bharti will pay USD8.3 billion upfront, followed by a further cash payment of USD700 million after one year, while it will also take over approximately USD1.7 billion of Zain’s debt. Commenting on the closure of the deal, Bharti chairman Sunil Mittal said: ‘We are delighted at the closure of this transformational deal for India and Bharti Airtel. The transaction is the largest ever cross-border deal in an emerging market and will result in combined revenues of about USD13 billion.’

Bharti has taken over Zain’s operations in 15 countries: Burkina Faso, Chad, Republic of Congo, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia. The Kuwaiti company’s subsidiaries in Morocco and Sudan were not included in the sale. Zain has also agreed to licence its name and related trademarks to Bharti in all of the new countries for an interim period; the Airtel brand is expected to be introduced across its news units by October 2010.

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Source: TeleGeography