A deal between Kuwaiti operator Zain and India's Bharti Airtel could be finalised over the next few days.
assets, excluding Sudan and Morocco. Bharti is expected to pay $10.7 billion, for assets in 15 African countries.
In a statement issued to ITWeb this morning, Zain says executives from both companies met yesterday in Kuwait to begin finalising the deal. “The board is pleased to report the due diligence process has been completed and that the parties are finalising definitive agreements, which are expected to be signed in the coming days.”
The value of the deal includes $1.7 billion in debt, which the Indian operator has agreed to take on. Bharti will pay $8.3 billion on signing the deal, with the remaining $700 million expected to be paid a year later.
Reports indicate Bharti has already raised the initial funding, which has come primarily from international banks; however, Singtel is rumoured to have put some of the money into the pot.
With only a signature outstanding, MTN could be facing its first real African competitor in the next few days. MTN and Bharti courted a deal last year, which would have seen the pair become one of the globe's largest operators by subscriber numbers.
MTN will now have to face its former potential partner as a strong African competitor.
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