Bharti sees total payout for Zain Africa at $9 bn

Bharti sees total payout for Zain Africa at $9 bn
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First Published: Tue, Feb 16 2010. 07 39 PM IST
Updated: Tue, Feb 16 2010. 07 39 PM IST
New Delhi: Bharti Airtel, India’s top mobile operator, said on Tuesday its total likely payout would be about $9 billion for buying Kuwaiti telecom Zain’s Africa assets.
Bharti, which is in exclusive talks until 25 March with Zain for buying its operations in 15 countries, has previously said the deal had an enterprise value of $10.7 billion.
On Tuesday, the Indian firm said the enterprise value was based on Zain Africa unit’s estimated net debt of about $1.7 billion as on 31 December 2009.
Bharti also said it had agreed with the Kuwaiti firm that $700 million of the total payable amount would be paid after one year of deal closure.
The total payout would include loans payable by operating companies to Zain Group, it said.
Ahead of the news, Bharti shares closed 4.5% down on Tuesday, extending losses for a second day after a 9.2% fall in the previous session, on concerns that a huge debt burden to finance the deal could stretch its balance sheet.
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First Published: Tue, Feb 16 2010. 07 39 PM IST
More Topics: Bharti Airtel | Telecom | Mobile | Zain | Africa |