Bharti Airtel has completed the acquisition of Zain Telecom’s Africa operations for US$bn. Read more about Bharti Airtel completes acquisition of Zain on Business Standard. In the largest ever telecom takeover by an Indian firm, Bharti. Bharti had a very low “Net Debt to Equity Ratio” of at the end of Dec., which means that it was virtually a debt free company It is good.

Author: Junris Daijin
Country: Trinidad & Tobago
Language: English (Spanish)
Genre: Software
Published (Last): 3 December 2012
Pages: 433
PDF File Size: 9.97 Mb
ePub File Size: 6.96 Mb
ISBN: 423-6-71267-503-2
Downloads: 77663
Price: Free* [*Free Regsitration Required]
Uploader: Dak

Five years on, Airtel’s Africa business still off target

Analysts say Zain had not invested enough in its Africa assets and was bleeding cash. The subscriber numbers stand at Airtel Africa says IPO plans on track. As bharhi in India have shown, achieving a minimalist cost structure is the best foundation an operator in an emerging market can have. Sudan and Morocco would be out of the deal.

Fill in your details: Zain has operations in 17 countries acquisotion the region and is claiming to be the second largest operator after MTN. Mittal stating acquisiion in the Zain’s case Airtel would have a total control. Never miss a great news story! Romal Shetty, who heads the telecom practice at KPMG, said the valuation may appear slightly stretched right now, but Airtel needs a foothold in Africa.

Printable version Jan acquisltion, 3: The minute factory model works when the volumes of calls are already there, which they did not have. This will alert our moderators to take action.


Nharti had not invested much in key things such as brand and network, which made integration more difficult. Voice calls were earlier charged by the minute. What is the outlook for telecom stocks? The transaction, which excludes Zain’s operations in Sudan and Morocco, may, however, pose challenges zian Mittal in terms of turning around Zain’s under-performing networks, particularly in Nigeria, the Kuwaiti company’s most important market.

Crude oil prices to direct sugar prices in But it has never met these targets and now it looks like Bharti may have bitten off more than it could chew. Then there was the fact that India, the core market, was still drawing too many management resources of the company.

Get instant notifications from Acquisitiom Times Allow Not now.

They got a very poor asset. Mr Shetty was also of the view that being a pioneer of the low-cost, outsourced model of operations, Bharti can replicate it in Africa, where market conditions are similar. The operations spread across 15 African countries that Bharti is seeking to buy airtwl grouped under an entity called Zain International. The acquisition gives Bharti Airtel a total customer base of million, including million subscribers it had in India at the end of April.

Bharti finally entered Africa after aborting negotiations twice for merger with MTN sincewith Mr.

Five years on, Airtel’s Africa business still off target – Livemint

Arpu is a key yardstick for telcos. A banker familiar with the situation said the acceptance of the offer clears the way for Bharti to carry out a due diligence of the business before a final deal. After twice wooing but failing to clinch a merger with South Africa’s MTN, Bharti’s ambitions to enter into vast African market has now been fulfilled. This article is closed for comments.


It seemed like a good idea at the time. Zain is the second largest operator and that acquksition the only difference. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings.

Bharti to acquire % of Zain’s African operations: Sources – The Economic Times

Airtsl the end of the March quarter—the target the company had set for itself—Airtel had Tariffs in Africa were around 10 cents a minute, compared with the less than 1 cent per minute in India.

Long-time Mittal lieutenant Manoj Kohli moved to Nigeria to helm the new business. He declined to be named as his organization does not authorize him to speak to the media.

Bharti Airtel has long been looking to expand into African market but was unable to do so. Two years later, things are not much better. Announcing the deal, Sunil Mittal said, “This agreement is a landmark for global telecom industry and game changer for Bharti.

Announcing the deal, Sunil Mittal, chairman and managing director of Bharti Enterprises said, “This agreement is a landmark for global telecom industry and game changer for Bharti.