Bharti signs off on Zain Africa; global subs hit 179 million

Bharti Airtel has signed definitive contracts with Zain Group for the purchase of the African operations excluding Sudan and Morocco for US$10.7 billion, bringing the Indian operator’s global subscriber base to 179 million upon completion. The deal is expected to close “as soon as reasonably practicable subject to the satisfaction of certain approvals”, a Zain press release stated.

"This agreement is a landmark for global telecom industry and game changer for Bharti Airtel…With this acquisition, Bharti Airtel will be transformed into a truly global telecom company with operations across 18 countries fulfilling our vision of building a world-class multinational,” commented Sunil Bharti Mittal, chairman and managing director of Bharti Airtel.

Mittal believes the strength of the Bharti brand and its unique business model will allow the operator to unlock the potential of the emerging markets in Africa.

“We are committed to partnering with the governments in these countries in taking affordable telecom services to the remotest geographies and bridging the digital divide,” Mittal added.

Subject to shareholder approval, the size of available distributable reserves and the repayment of the US$4 billion revolving credit facility, Zain intends to distribute a large proportion of its upfront net proceeds to shareholders in the form of dividends. The group intends to focus on the high ARPU-generating operations in the Middle East and to substantially improve its balance sheet.