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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Bharti to acquire % of Zain’s African operations: Sources – The Economic Times
Earlier, it had tried twice—and failed both times—to buy MTN Group, a South Africa-based telecom firm with a presence in 22 countries across Africa and the Middle East. Analysts say Zain had not invested enough in its Africa assets and was bleeding cash.
Bharti Airtel has long been looking to expand into African market but was unable to do so. A challenge for Bharti Airtel will be to integrate the operations of Zain Africa in all 15 countries, which currently operate largely as stand-alone units, airtwl Kamlesh Bhatiaa principal research analyst at Gartner.
State Bank of India has agreed up to one billion dollar loan in rupee terms. We are looking at more opportunities as we build more roll outs in Africa,” he remarked. Please Email the Editor. They got a very poor asset.
Five years on, Airtel’s Africa business still off target – Livemint
Zain has operations in 17 countries in the region and is claiming to be the second largest operator after MTN. Zain had not invested much in key things such as brand and network, which made integration more difficult.
Get instant notifications from Economic Times Allow Not now You can switch acquisitionn notifications anytime using browser settings. The company has now million subscribers in 18 Asian and African nations.
Not all analysts are as harsh.
The understanding of the market was lacking. A zsin 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. Then there was the fact that India, the core market, was still drawing too many management resources of the company. Your Reason has been Reported to the admin. What is the outlook for telecom stocks?
Bharti to acquire 100% of Zain’s African operations: Sources
Long-time Mittal lieutenant Manoj Kohli moved to Nigeria to helm the new business. Representatives from both companies were not available for comment.
At present, China Mobile is the world’s largest mobile player with a subscriber base of million, followed by Vodafone millionTelefonica million and American Bbharti million. Read more on Bharti Airtel. Bharti Airtel dials Zain.
The operations spread across 15 African countries that Bharti is seeking to buy are grouped under an entity called Zain International. This one Indian innovation could transform Africa.
Special Correspondent New Delhi, June 08, Two years later, things are not much better. Fill in your details: 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 financed entirely by cash or be a part-cash and part-share deal.
Sudan and Morocco would be out of the deal. Choose your reason below and click acquisiiton the Report button. He declined to be acqyisition as his organization does not authorize him to speak to the media. By expanding its business outside the country, Bharti Airtel can in the long term benefit from economies of scale, including getting better deals from suppliers, Bhatia said. Bharti finally entered Africa after aborting negotiations twice for merger zxin MTN sincewith Mr.