Zain in exclusive discussions with Bharti over sale of Zain Africa BV
Kuwait; 16 February 2010
The Board of Directors of Mobile Telecommunications Company KSC, ‘Zain’, after its meeting on February 14, 2010, issued a resolution to accept a proposal received from Bharti Airtel Limited (“Bharti”) to enter into exclusive discussions until 25 March 2010 regarding the sale of its African unit, Zain Africa BV (“Zain Africa”). This proposal does not include Zain’s operations in Sudan or its investment in Morocco.
Bharti's proposal implies an enterprise value of approximately US$ 10.7 billion with US$ 10 billion to be paid upon closing whereas the remaining US$ 700 million will be paid one year after the conclusion of the deal. There is a break up fee of US$ 150 million applicable to both parties. Upon successful conclusion, this transaction would reflect an equity value of approximately US$9.0 billion for Zain Africa.
After the repayment of certain liabilities, Zain expects net proceeds of up to US$ 5 billion taking into consideration that Zain Group anticipates the expected proceeds when realized to be reflected on the company’s profit and loss during the second quarter of this year. Any decisions to distribute dividends or not reverts to the recommendation of the Board of Directors and the ratification of the General Assembly.
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Issued by Zain Group Corporate Communications Department
