India Bharti buys Zain Africa $9 bln

  1. Posted on Tuesday 8 June 2010 - 16:13
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    John A. Afful Jnr, AfricaNews reporter in Accra, Ghana
    India's Bharti Airtel is on the verge of becoming the world's no. 5 wireless carrier by subscribers after completing its $9 billion acquisition of African operations from Kuwait's Zain. The deal means that the firm is taking over operations in 15 African countries.
    Zain quarterly profits down 31% after sale of Zain Africa
    The countries include Burkina Faso, Chad, Congo Brazzaville, the Democratic Republic of the Congo, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia.

    The Indian telecom market leader is facing ferocious competition at home and betting on opportunities in Africa are worth the risks of operating there even as some regard the total deal value of $10.7 billion -- including assumption of $1.7 billion debt -- as a full price Bharti is paying, according to Reuters.

    The report said the deal, which would lift the company's subscriber base to 180 million from 18 countries, brings tough financial and management challenges for a company scrambling to defend its lead in a fiercely competitive home market.

    Analysts have said a big challenge for Bharti was to streamline operations across 15 different countries in Africa, raising revenue and turning around the loss-making assets.

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