Kuwait

Bharti to raise $8.5 billion in offshore loans for Zain deal (India)

On 03.17.10, In Mobile, By Editor

www.WirelessFederation.com/news: In order to raise up to $8.5 billion in offshore loans to fund its $9 billion deal to buy African mobile operations of Kuwait’s Zain, Indian telco Bharti Airtel has issued a term sheet to banks.

Earlier, $9 billion facility was looked by Bharti which also included an onshore rupee tranche. According to the bankers familiar with the deal, all-in pricing is below all expectations, which ranged from 200 bps to 250 bps above Libor while Bharti opted to drop the onshore tranche of its loan due to the strong response from offshore lenders.

India’s largest telecom operator Bharti and Zain are in talks with each other to buy latter’s operations in 15 African countries and the exclusive negotiations are scheduled to lapse on March 25.

Bharti Airtel to raise $7b in loan (India)

On 03.09.10, In Mobile, By Editor

www.WirelessFederation.com/news: In order to finance the purchase of some of Kuwait’s Mobile Telecommunications Co. assets, Indian telco Bharti Airtel is looking to raise $7 billion via a six-year U.S. dollar loan with an average maturity of 4.75 years.

Another $2 billion to $3 billion will also be raised India’s largest mobile phone operator by subscribers via a rupee loan. The planned $7 billion loan is aimed to be priced at 225 basis points by Bharti Airtel above the London interbank offered rate.

According to the people familiar with the matter, Bharti Airtel is gunning for a very tight rate and it is still not sure where it will settle but the pricing will be far tighter than initial discussions. It was earlier revealed that initial discussions for funding began at around 300 basis points above Libor for a seven-year dollar loan.

The comments are pouring as Bharti Airtel in its bid to enter a fast-growing overseas market will commence its exclusive talks until March 25 to buy the African assets of Zain.

Tagged with: Africa • ASIA • Bharti Airtel • India • Kuwait • operator • Zain

Qatar telecom Q4 profit drops by 7%

On 03.09.10, In Mobile, By Editor

www.WirelessFederation.com/news: Due to non operational provisions in Kuwaiti’s Wataniya subsidiary, 7.9% drop in the fourth-quarter profits of QAR431 million (US$118 million) has been reported by Qatar Telecom (Qtel). 9% increase in the revenue has been shown, going up to QAR6.54 billion (US$1.8 billion) while the EBITDA was up by 4.6% to QAR2.97 billion. However, the EBITDA margin fell to 45% from 47%.

The net profit was up by 20.5% to QAR2.78 billion (US$764 million) for the full year and revenues on the other hand grew by 18.2% to QAR24 billion (US$6.6 billion).

With a rise of 5.2% over the year, 60.53 million customers were gained by Qtel across all its markets.

According to His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of the Qtel Group, this has been a year of real achievement for the Qtel Group and now the company is the largest telecommunications provider in the Middle East – North Africa region by number of operations while the diversified operations have delivered strong returns and enabled the firm to thrive in a highly competitive and challenging environment.”

Tagged with: Africa • EBITDA • Kuwait • Middle East • Net Profit • Qatar Telecom • Wataniya

Kuwait’s Wataniya net profit declines by 22.5%

On 03.03.10, In Mobile, By Editor

www.WirelessFederation.com/news: With a year-on-year loss of 22.5%, a net profit of KWD11 million (USD37.9 million) has been posted by Kuwait-based National Mobile Telecommunications Company (Wataniya), for the fourth quarter of 2009.

However, its full year net profit was up to KWD108.3 million in 2009, from KWD82.4 million in 2008. No reasons have been revealed by the company behind its declining bottom line.

Its parent company Qatar Telecom (QTel) is also expected to release its preliminary results for the full year 2009 soon, with a full disclosure scheduled for March 7. Wataniya’s operating market includes Algeria, Tunisia, Saudi Arabia and the Maldives.

Tagged with: Algeria • Kuwait • LG • Maldives • Middle East • Qatar • Qatar Telecom • Qtel • Saudi Arabia • Tunisia • Wataniya

Africa has great potential among all emerging markets: Bharti CEO

On 02.26.10, In Mobile, By Editor

www.WirelessFederation.com/news: While explaining the rationale for buying Zain, Africa was described as a potential emerging market by Sunil Bharti Mittal, founder Chairman and Group CEO, Bharti Enterprises.

The need of globalisation for Bharti has also been explained by him as Indian operations were generating free cash flows. While defending his decision to enter into talks with the Kuwait telecom major, he made it clear that competitive intensity is low for Zain in most countries and the valuations offered are fair and reasonable.

According to Bharti officials, Africa had good growth opportunities among emerging markets, given its high population, lower mobile penetration and relatively less competition and the tariffs too, in Africa are more than 10 times India.

Tagged with: Africa • ASIA • Free Cash Flow • India • Kuwait • Kuwait Telecom • Mobile Penetration • Zain

Bharti might sell shares to SingTel (India)

On 02.22.10, In Mobile, By Editor

www.WirelessFederation.com/news: Shares of Bharti Airtel might be sold to Singapore Telecommunications by the operator to partly fund its purchase of Zain’s African assets and avoid taking on too much debt.

According to SingTel, it is premature to talk about funding as the transaction is subject to ongoing discussions, due diligence and customary regulatory approvals and as a strategic investor, the company has significant governance and shareholder rights besides having involvement in key decisions, including major investments.

Bharti Airtel is in exclusive talks to buy most of the African assets of Kuwaiti telecoms firm Zain for $9 billion.

Tagged with: Africa • ASIA • Bharti Airtel • India • Kuwait • operator • Singapore • Singapore Telecommunications • SingTel • Zain

Indian telco Bharti & Zain to sign Letter of intent

On 02.22.10, In Mobile, By Editor

www.WirelessFederation.com/news: A letter of intent (LoI) will be signed between Bharti Airtel and Zain for the proposed USD 10.7-billion deal for the African assets of the Kuwait-based firm by the end of this week.

An exclusive talk is carried out between the two companies till March 25 for the proposed deal as per which Bharti would buy Zain’s African assets except those in Morocco and Sudan.

USD 9 billion for the assets would be paid by Bharti and the rest would be towards the debt of the Kuwaiti firm.

Tagged with: Africa • ASIA • Bharti Airtel • India • Kuwait • LOI • Morocco • Sudan • Zain

Bharti keen to enter African market by buying Zain’s African assets

On 02.17.10, In Mobile, By Editor

www.WirelessFederation.com/news: By seizing on a potential $9 billion deal with Kuwait’s Zain, Bharti Airtel appears determined to wade into a market loaded with poverty, promise and major legal tussles but the deal if completed, would catapult the company into the ranks of major telecom operators in Africa. Thus Bharti would have significant footholds in two continental markets- India and Africa.

While Zain appears to be keen seller, Airtel too expects to get a head start over those trying to buy scattered operations or acquire licenses in different African countries.

However, Bharti isn’t the only telecom operator eager to enter the African market. $2.5 billion has been bid by a consortium involving China Unicom (Hong Kong) Ltd for the former state telecoms monopoly in Nigeria.

Tagged with: Africa • Airtel • ASIA • Bharti Airtel • China • China Unicom • Hong Kong • India • Kuwait • Nigeria • Zain

Kuwait’s Zain expects huge returns from mobile deal with Airtel

On 02.16.10, In Mobile, By Editor

www.WirelessFederation.com/news: Five billion dollars is expected to be made by Kuwait’s Zain telecom from selling its operations in Africa to India’s Bhrati Airtel for 10.7 billion dollars. As per the agreement, Bharti is to pay 10 billion dollars when the deal is completed and the remaining 700 million dollars after one year of signing the agreement.

Company’s shareholders’ equity will be increased by nine billion dollars after the sale of operations in 15 African nations.
Zain’s operations in Sudan and Morocco are excluded from the deal.

Tagged with: Africa • Airtel • ASIA • India • Kuwait • Morocco • Zain

Airtel’s shares slips 10% as it inks deal with Zain (India)

On 02.15.10, In Mobile, By Editor

www.WirelessFederation.com/news: Bharti Airtel’s deal with Kuwaiti telecom Zain for its African cellular assets has been given thumbs down by the brokerages as the company shares slipped 10 per cent. $10.7 billion offer is expected to give financial strain to the company.

According to the Bank of America-Merrill Lynch, the valuation seems rich, the growth outlook for Zain’s African portfolio appears unexciting and a potential deal could materially stress Bharti’s balance sheet.

An announcement was made by Bharti offering to buy African assets of Kuwait’s Zain telecom for $10.7 billion.

Tagged with: Africa • ASIA • Bank Of America • Bharti Airtel • India • Kuwait • Merrill Lynch