Zambia’s financial regulator tells Zain to value its local subsidiary

6 Oct 2010

Zambia’s Securities and Exchange Commission (SEC) has reportedly ordered Bharti Airtel to carry out an independent valuation of its recently acquired Zain Zambia subsidiary, after local media claimed the financial regulator had rejected Bharti’s offer to minority shareholders. As previously reported by CommsUpdate, late last month the SEC turned down a bid by Bharti Airtel of ZMK710 (USD0.144) per share for the 22% stake, with the offer refused on the basis that it was too far below market estimations; it was the second time that Bharti had had an offer for the stake rejected having put forward a ZMK675 per share proposal in August 2010. According to Bloomberg, the aim of the valuation exercise is to ‘afford fair treatment to all shareholders on the pricing of the offer,’ SEC chairman Munakupya Hantuba said, adding: ‘Non-controlling shareholders shall obtain at least the equivalent of the price paid per share as derived from that obtained in the acquisition of control.’

Zambia, Airtel Zambia, Bharti Airtel