Bharti zain deal updates : India based Bharti Airtel has offered $10.7 billion for most of the African assets of Kuwait’s Zain in which Morocco or Sudan operations are not included.
The offer marks Bharti’s third attempt to enter Africa including a second failed attempt last year to buy South Africa’s MTN Group Ltd. for about $23 billion.
France’s Vivendi SA, owner of Maroc Telecom, walked away from buying Zain’s African assets in July, saying the purchase didn’t fit “its usual criteria of profitability and financial discipline.” Zain had valued those assets at about $10 billion, three people familiar with the plans said in June.
Africa represents about 62 per cent of Zain’s 64.7 million customers, but only 15 per cent of group net profit.
“No doubt, those are future growth areas. But the growth will come only in 5-8 years time and in the short-term there is a risk of straining Bharti’s balance sheet,” said Baliga.
