Monday, March 29, 2010

Bharti Airtel will sign deal with Zain on March 31st

Bharti Airtel, India’s largest telecom operator, is going to sign deal with Kuwait mobile operator, Zain, to take over its assets in Africa. The $10.7 billion deal will ensure Bharti Airtel’s entrance into the African mobile phone market. On the other hand, the government of Gabon disapproves of Zain Gabon’s sale to Bharti Airtel and declared to take “all the necessary measures.”

The deal has already been approved by the boards of both companies. Last week, Bharti and Zain reported that all the necessary works have been done and the two companies would sign agreement pretty soon and then the announcement came on March 25, 2010. It was also the last day of the “exclusive talks” between the two companies.

Upon completion of the deal, Bharti Airtel would become the seventh largest telecom company in the world with a subscriber base of 171 million. Zain has its business in different regions in Africa.

According to Kuwaity daily, Al-Watan, the deal signing ceremony would take place at the headquarters of Zain Africa in Amsterdam on March 31, 2010. Zain’s Chairman Asa’ad Al Banwan, CEO Nabeel Bin Salamah, and Bharti Enterprises’ Chairman Sunil Mittal and other senior officials would be present in the ceremony.

After signing the deal, Asa’ad Al Banwan would return and hold a board meeting on Wednesday where the annual results Zain will be approved.

Related article:

The Hindu

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