Bharti seals Zain deal, now world No. 5

Bharti Airtel Tuesday became the world's fifth largest mobile machinist in subscribers, as it completed the $ 10700000000 acquisition of Kuwaiti company Zain Group mobile operations in 15 countries crossways Africa.

Trade is the biggest ever cross-border trade and lead to a shows potential market with a turnover of more than $ 12400000000 and EBITDA of over $ 4700000000, which is based on the results of the last inspection.

Airtel now has operations in 18 countries in Asia and Africa and the purchaser base of over 180 million.

This in itself does not cause worsening of Bharti in India and increase the customer base is the slowest pace in the middle of the seven largest operators in the condition.

Although the uninspired markets drove the shares in Bharti down 3.77 percent 257.80 R today, almost without doubt reflects the concern about the price of the deal - seen by some as high - and the future profitability. "Force of taking a year or two the company makes a profit from this expensive purchase," said telecom manufacturing specialist Mahesh Uppal. “Implementation Bharti are reasonable model in Africa is not easy, because it is based on volume. Some of the markets in Africa are small, so this representation is incomplete value. But to be seen how innovative Bharti African souk. "

The company, however, was delighted at his press conference in New Delhi today, when it raised the upper soil of Africa to the public. "A billion people, 10 times larger than India, it is really a great opportunity to grow in 15 countries, and we are looking for a figure of options that we develop and deploy Airtel in Africa," said Chairman Sunil Mittal.

Zain buys African assets pit against Bharti Vodafone Group Plc, the world's largest airline, MTN Group Ltd., the continent's biggest carrier. Bharti and MTN failed for the second time past the end of the $ 23000000000 to the merger.

The company has now paid $ 7900000000 Zain hosts, which was published in March this year.

Although $ 400 mn more weeks paid until the end of certain milestones, the second offer of 700 million U.S. dollars payable after one year. Bharti also take $ 1700000000 (R 8000 crore) and Zain is the amount of time.

Bharti group is to increase the debt to foreign banks and State Bank of India, as lead counsel and lead manager, Standard Chartered Bank, committed the largest amount of 1.3 billion, while Barclays' $ 900,000,000. Bharti has recently paid $ 2600000000 to the Indian government buy the 3G frequencies and will have to pay more in the auction of broadband wireless spectrum is completed.

Zain Africa are still 100 per cent Bharti International. "Flattering No. 3 globally, not far away," said Bharti Airtel President (International Unit), Manoj Kohli, determination of head of African operations.