t hehindu.

com
http://www.thehindu.com/business/companies/bharti-airtel-completes-zain-acquisition/article449759.ece
Bharti Airtel completes Zain acquisition
Becoming the world's f if th largest mobile operator, Sunil Mittal led Bharti Airtel on Tuesday announced that
it had completed the acquisition of Zain Telecom's Af rica operations f or $10.7 billion.
The company has now 180 million subscribers in 18 Asian and Af rican nations. The company announced
that it would launch the Airtel brand in Zain's operations in all the 15 nations in October.
Announcing the completion of the deal at a press conf erence here, Bharti group Chairman Sunil Mittal said
the transaction is the largest ever cross-border deal in an emerging market and will result in combined
revenues of about $13 billion.''
Bharti f inally entered Af rica af ter aborting negotiations twice f or merger with MTN since 2008, with Mr. Mittal
stating that in the Zain's case Airtel would have a total control.
He said Zain Af rica would now be 100 per cent subsidiary of Bharti International. This deal would signal
many new investments that would go to Af rica, he added.
At present, China Mobile is the world's largest mobile player with a subscriber base of 522 million, f ollowed
by Vodaf one (348 million), Telef onica (206 million) and American Movil (201 million).
Africa strategy
Elaborating on Af rica strategy, Bharti's international operations in-charge Manoj Kohli said the company had
set a target of 100 million subscribers and $5 billion revenues by 2012-13.
Bharti has acquired Zain Telecom's operations in 15 Af rican nations, excluding Sudan and Morocco. Zain
has operations in 17 countries in the region and is claiming to be the second largest operator af ter MTN.
Asked whether he regretted missing a deal with MTN twice and whether that was his f irst choice, Mr. Mittal
said MTN was the f irst opportunity that was available at that time. In MTN's case, we would have had
board control but no management control and no change in brand.
There were compromises to be made (in MTN). Zain is the second largest operator and that is the only
dif f erence. But we will have f ull control and our own brand.''
With this acquisition, we will have an unparalleled f ootprint in one of the f astest developing regions in the
world. We are looking at more opportunities as we build more roll outs in Af rica,'' he remarked.
The company has also reached a settlement with Broad Communications, the single largest shareholder in
Zain Nigeria, f ollowing which its chief Otudeko would now head Bharti's operations in Nigeria.
There is no extra payment made f or the settlement. The company does not see any problem with another
small shareholder Econet Wireless in Nigeria.
For completing the deal, Bharti paid $7.9 billion and the balance $400 million f rom the total upf ront payment
would be done in a f ew days on completion of certain f ormalities,'' Mr. Mittal said.