Zain's head office in Kuwait

Kuwait’s Zain said on Thursday it expects to close a $
10,7bn deal with India’s Bharti Airtel “within days”
 for the sale of its operations in 15 African countries.

“The (Zain) board is pleased to report that the due diligence 
process has been completed and that the parties are finalising
 definitive agreements, which are expected to be signed in the 
coming days,” Zain said in a statement.

“Upon signing, the parties will move towards getting any 
required approvals,” the Kuwaiti company said following a meeting 
of its board late on Wednesday.

The sale of the African operations does not include Zain’s
operation in Sudan or its investment in Morocco, the company said.

The value of the deal includes $1,7bn of debt that
 the Indian telecoms giant will assume.

Bharti is due to pay $8,3bn on signature of the 
deal, while the remaining $700m will be paid a year 
later.

Bharti Airtel, the largest Indian mobile phone operator, said on
 Sunday it had raised the $8,3bn, mainly from 
international banks.

Bharti, which is 32% owned by Singapore Telecom, and 
Zain, Kuwait’s biggest mobile phone company, agreed last month to 
hold exclusive talks until 25 March to conclude the deal.

The takeover will be one of India’s biggest cross-border deals 
and will give Bharti a significant foothold in the African cellular
 market, where just 36 out of every 100 people own a mobile phone.

If the deal goes through, Bharti which already has 125m 
Indian subscribers, would get 42m subscribers in 15 African
 countries from Burkina Faso to Zambia, while Zain clients will
 shrink to 30m from 72m.

Zain, which began its investments in Africa about five years
 ago, had said that it expects to post returns of up to $5bn from the deal.  — Sapa-AFP

• Subscribe to our free daily newsletter
• Follow us on Twitter or on Facebook