Zain(ZAIN.KW) and India’s Bharti Airtel (BRTI.BO) are expected to sign a letter of intent for the $9 billion African assets.
Bharti, India’s largest wireless carrier, is in exclusive talks until March 25 to buy Zain’s African business, excluding Morocco and Sudan. It is the Indian firm’s third attempt at gaining a foothold in a continent that offers a last opportunity for major subscriber growth.
Bharti had said it will have clarity by next week on funding its offer for Zain’s operations in 15 African countries. The two firms have agreed on an enterprise value of $10.7 billion for the assets, including $1.7 billion of debt on Zain Africa’s books.
Posted on February 22nd, 2010 by Gunjan
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. He is author of Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market (Hachette Book Group, July 2008).
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