Kuwait's Zain closes African sale to India's Bharti
KUWAIT CITY: Kuwait's Zain telecom said on Tuesday (8 June 2010) it has completed the sale of its operations in 15 African nations to India's Bharti Airtel for US$10.7 billion (€9 billion) and received most of the cash.
Kuwait's largest mobile operator said it has already received US$7.87 billion and will receive US$400 million more within 12 months, after completing "certain official requirements."
Zain will also receive another US$700 million one year from now.
"I announce here today that we have completed the deal to sell African operations to Bharti Airtel," Zain CEO Nabil bin Salamah told a press conference.
The sale does not include the company's units in Sudan and Morocco.
The value of the deal includes US$1.7 billion of debt that will be assumed by Bharti Airtel.
The two telecom giants signed the deal on March 30.
Zain, in which the Kuwaiti government holds a 24.6% stake, expects to post a net profit of $3.3 billion from the sale.
Source: AFP