Kuwaiti-based telecoms company Zain has announced it received US$295.4m from Indian telecom group Bharti Airtel for the sale of its businesses in 15 African countries. Zain’s presence in Africa is now limited to Sudan and Morocco.
In June, the company…
Kuwaiti-based telecoms company Zain has announced it received US$295.4m from Indian telecom group Bharti Airtel for the sale of its businesses in 15 African countries. Zain’s presence in Africa is now limited to Sudan and Morocco.
In June, the company announced it had closed the sale of Zain Africa to India’s Bharti Airtel, in a transaction worth US$10.7bn. After the closing, the company received US$7.87bn and said it would receive a further US$400m within 12 months after completing other formal requirements. Another US$700m is due a year after completion.
“The firm had received US$295.4m after deducting expenses, from Bharti, and (this amount) will be booked in the third quarter results of this year,” Zain said in a statement to the Kuwaiti bourse on Thursday. The remainder US$100m is expected to be received within the next 10 months, the statement read.
With the proceeds of the deal, Zain repaid the US$4bn revolving credit facility secured in 2006, and said it plans to use the remainder to pay dividends and attend to “other corporate matters”.
Zain was advised by banks UBS and BNP Paribas, with Linklaters providing legal advice.
