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Bharti to bid for rest of Zain Zambia
23 July 2010
Bharti Airtel, which has paid $10.7bn for Zain’s African operations, plans to bid for 22% of Zain Zambia not included in the deal
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Bharti Airtel
Zain
Zambia
Bharti
IPO
Lusaka
Africa
Bharti Airtel will tender an open offer for the remaining 22% stake in Zain Zambia. The Indian telecom company already owns a 78% stake in Zain’s Zambian unit, which is listed on the Lusaka Stock Exchange and will therefore be required to make an open offer to Zain Zambia’s shareholders. The bid is expected to raise Bharti’s payout by around $250-300 million.
In June, Bharti bought the African business of Kuwait-based Zain in a $10.7 billion deal. As part of the acquisition, it bought Zain’s operations in 15 countries, including Zambia. The Indian company also acquired operations in countries, including Burkina Faso, Chad, Congo Brazzaville, the Democratic Republic of Congo, Gabon and Kenya.
Zain listed its Zambian operation on the Lusaka Stock Exchange in April 2008 after an initial public offering.
Separately, about four more banks are likely to join the core group of lenders that syndicated a $7.5 billion loan for Bharti to acquire the African assets of Zain. Standard Chartered Bank is the lead arranger of the loan. GTB