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1
An Assignment on
³Bharti Airtel & Zain Africa Deal´
Submitted to:
Prof. Prashant Sipani
Subject:
Mergers & Acquisition
By
 
Swati GuptaPGP/FW/09-11
THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENTJAIPUR
 
2
 
COMP
ANY
PROFILE
 
Bharti Airtel
Bharti Airtel Limited
formerly known as
Bharti Tele-Ventures LTD
(BTV
L)
is an
I
ndiancompany offering telecommunication services in 19 countries.
I
t is the largest cellular service provider in
I
ndia, with more than 141 million subscriptions as of August 2010.
 
Bharti Airtel is the world's third largest, single-country mobile operator and fifth largest telecomoperator in the world with a subscriber base of over 180 million.
 
I
t also offers fixed line servicesand broadband services.
I
t offers its telecom services under the
Airtel
brand and is headed bySunil Bharti
M
ittal. Bharti Airtel is the first
I
ndian telecom service provider to achieve this
C
iscoGold
C
ertification. To earn Gold
C
ertification, Bharti Airtel had to meet rigorous standards for networking competency, service, support and customer satisfaction set forth by
C
isco.
 
Thecompany also provides land-line telephone services and broadband
I
nternet access (DS
L)
in over 96 cities in
I
ndia.
I
t also acts as a carrier for national and international long distancecommunication services. The company has a submarine cable landing station at
C
hennai, whichconnects the submarine cable connecting
C
hennai and Singapore.
I
t is known for being the first mobile phone company in the world to outsource everything exceptmarketing and sales and finance.
I
ts network (base stations, microwave links, etc.
)
is maintained by
E
ricsson and Nokia Siemens Network,
 
 business support by
I
B
M
and transmission towers byanother company.
 
Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind
C
hina
M
obile and
C
hina Unicom.
I
n
I
ndia, the company has a 30.7% share of the wireless servicesmarket.
I
t is structured into four strategic business units -
M
obile, Telemedia,
E
nterprise and Digital TV.The mobile business offers services in
I
ndia, Sri
L
anka and Bangladesh. Airtel has alwayslooked at the overseas market also.
Revenue:
US$ 7.254billion
Operating Income:
US$ 2.043billion
Net Income:
US$ 1.662billion
Total Assets:
US$ 11.853 billion
 
3
 
Zain Group
 Zain Group
is a mobile telecommunications company founded in 1983 in Kuwait as
M
TC
or 
M
obile Telecommunications
C
ompany.
O
n September 8, 2007
M
T
C
Group re-branded to Zainwhich became the Group¶s corporate master brand. Today, it is the leading mobile and dataservices operator with a commercial footprint in 8
M
iddle
E
astern and African countries with aworkforce of over 5,000 providing a comprehensive range of mobile voice and data services toover 34.2 million active individual and business customers.Zain has a commercial presence in 8
M
iddle
E
astern and African countries: Bahrain,
I
raq,Jordan, Kuwait,
L
ebanon (as
M
T
C
touch
)
,
M
orocco, Saudi Arabia and Sudan. Zain is listed onthe Kuwait Stock 
E
xchange. There are no restrictions on Zain shares as the company¶s capital is100% free float and publicly traded. The largest shareholder is the Kuwait
I
nvestment Authority(24.6%
)
.Zain entered Africa in
M
ay 2005 through the US$3.4 billion purchase of 
C
eltel
I
nternationalwhich had 13 country operations serving 5 million customers at that time.
I
t invested heavilyacross the continent through network upgrades and acquiring two more country licenses and byJune 2010 it had over 40 million customers across the continent. Additionally Zain introduced³
O
ne Network¶ which allowed all its traveling customers across Africa and the
M
iddle
E
ast toroam free of charge when entering another Zain country operation.
Revenue:
US$ 7.441 Billion
Net Income:
US$ 1.196 Billion
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