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Zain concludes the sale of its African operations to Bharti Airtel
Kuwait, 8 June 2010:
Mobile Telecommunications Company KSC (“Zain”) is pleased to announce that it has now satisfied all required conditions precedent to closing of the sale of 100% of Zain Africa BV (“Zain Africa”) to Bharti Airtel Limited (“Bharti”). This transaction values Zain’s African portfolio (excluding Sudan and Morocco) at US$10.7 billion on an enterprise basis.
This transaction has resulted in aggregate net cash proceeds of US$8.968 billion. As at 8th June 2010, Zain confirms that it has received US$7.868 billion of cash proceeds from Bharti. Over the next 6 months, Zain expects to receive up to an additional US$400 million upon certain milestones being achieved. The balance of US$700 million is due one year from completion as per the original agreements signed on 30th March 2010.
In fulfillment of its debt obligations, Zain has repaid the US$4 billion Revolving Credit Facility which the company entered into in July 2006. Going forward, Zain intends to utilise the remaining proceeds to pay dividends and to attend to other corporate matters.
Under the terms of the original agreements, Zain has licensed the use of the “Zain” brand and related trademarks to Bharti in all 15 African operations for an interim period.
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A presentation to give further insight on the performance of the Zain Group and its Middle Eastern and African operations up to H1-2009.
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