Zain-Bharti deal nears completion
Bharti Airtel pulls funding together for purchase of Zain's African assets as deal nears completion
Kuwait based telco Zain said that the sale of most of its African assets to India’s Bharti Airtel was “proceeding to completion” and that Bharti had started to draw funding for the deal from its lenders.
On completion, Zain will repay its US$4 billion Revolving Credit Facility, and will use the remaining proceeds to attend to other corporate matters, the telco added in a statement.
The company will also reward its shareholders, with a “large part” of the proceeds from the sale of the African assets earmarked for shareholders, according to a report from Reuters, which quoted Zain Chairman Assad al-Banwan.
Zain signed a definitive agreement to sell its African business, excluding its operations in Morocco and Sudan, to Bharti Airtel for $10.7 billion at the end of March.
In March, Zain telco confirmed that it would receive $9 billion in cash from Bharti, of which $8.3 billion will be paid upon closing and $700 million one year after closing. Bharti will also assume $1.7 billion of debt obligations.