Zain concludes Zain Africa sale to Bharti Airtel

Zain announced today it has satisfied all required conditions precedent to the closing of the sale of 100 per cent of Zain Africa to Bharti Airtel, excluding Sudan and Morocco for US$10.7 billion.

The transaction has resulted in aggregate net cash proceeds of US$8.968 billion. As of June 8, Zain has received US$7.868 billion of cash proceeds from the Indian operator. Over the next six months the Kuwaiti group expects to receive up to an additional US$400m upon certain milestones being achieved. The balance of US$700 million is due one year from completion as per the original agreements signed March 30.

In fulfilment of its debt obligations, Zain has repaid its US$4 billion revolving credit facility which the company entered into in July 2006. Going forward the company intends to utilise the remaining proceeds to pay dividends and to attend to other corporate matters.

Under the terms of the original agreements, Zain has licensed the use of the ‘Zain’ brand and related trademarks to Bharti in all 15 African operations for an interim period.

"This sale crystallises the significant value we have created for our shareholders over the last five years. The board of directors will consider the best use of the remaining proceeds to further enhance value for all stakeholders," commented Asaad Al Banwan, chairman of the board of directors at Zain.