Zain to pay USD129m settlement to Airtel over 2010 sale of African units

3 Nov 2016

Kuwaiti telecoms provider Zain Group will pay USD129 million to Bharti Airtel over a settlement related to the sale of Zain’s Africa operations to the Indian firm in June 2010. Zawya cited a spokesperson for Zain as saying that the payment will have no future financial impact on Zain, as the company has set aside provisions to cover potential payments related to the transaction at the time of the sale.

According to TeleGeography’s GlobalComms Database, in June 2010 Zain sold its mobile operations in 15 countries in the Sub-Saharan Africa region – namely Burkina Faso, Chad, Republic of Congo, Democratic Republic of Congo (DRC), Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia – to Bharti Airtel. The Indian telecoms group paid a net USD8.97 billion in cash for 100% of Netherlands-based holding and finance company Zain Africa BV (formerly Celtel International) in a deal which valued the business at USD10.7 billion, including USD1.7 billion of debt.

Kuwait, Bharti Airtel, Zain Group