Zain's head office in Kuwait

India’s largest telecommunications operator, Bharti Airtel,
has finalised US$8,3bn in financing needed for its proposed
 acquisition of the Africa assets of Kuwait’s Zain, Bharti said on 
Sunday.

“The financing was oversubscribed, with major international
 banks committing to underwrite the total amount,” Bharti said in a
statement.

Zain accepted a $10,7bn offer from Bharti Airtel in 
February to sell most of its Africa businesses as it refocuses on
 its home market in the Middle East.

The deal includes $1,7bn of Zain debt, plus $8,3bn 
to be paid by Bharti upfront and $700m one year from now, 
said a person familiar with the negotiations who spoke on condition 
of anonymity because he was not authorised to speak to media.

A consortium of international banks, led by Standard Chartered
 Bank, Barclays and the State Bank of India will provide $7,5m in loans, Bharti said.

ANZ, BNP Paribas, Bank of America Merrill Lynch, Credit Agricole 
CIB, HSBC, Singapore’s DBS Group, Bank of Tokyo-Mitsubishi UFJ and
 Sumitomo Mitsui Banking also participated in the 
underwriting, it said.

The State Bank of India, India’s largest lender, has agreed to
give Bharti up to an additional $1bn equivalent in rupees, 
which would also cover transaction costs, the statement said.

The company would not disclose the terms of the loans. Bharti finalised the financing with its board at a meeting
 on Saturday and has until 25 March, when the period for exclusive 
talks expires, to work out final details and complete due 
diligence.

The deal does not include Zain’s holdings in Sudan or Morocco.

It is not clear what steps Bharti will take, if any, to protect 
itself against an ongoing legal dispute over Zain’s Nigerian 
assets.

A successful closure would make Bharti an even bigger player in
the developing world, and offer it some relief from India’s
 increasingly crowded market. Faced with declining market share and
 slipping revenues at home, Bharti has been trying to replicate its 
low-cost business model abroad, but two earlier attempts to merge
 with SA’s MTN Group were foiled when talks broke
 down.

For Zain, known officially as Mobile Telecommunications Co, the
 deal is a chance to cash in on an expansion led by ousted CEO Saad al-Barrak, after a previous attempt to sell the 
African holdings failed.

The deal, if successful, would be among the biggest overseas
 acquisitions in Indian corporate history.  — Erika Kinetz, Sapa-AP

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