Zain

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.

SingTel might support Bharti’s Zain acquisition (India)

On 03.15.10, In Mobile, By Editor

www.WirelessFederation.com/news: Financial assistance might be offered by Singapore’s SingTel to India’s Bharti Airtel to support its attempt to buy Zain’s African mobile networks. The company owns just under a third of the Bharti Airtel. The company has cleared its intent not to inject money directly into Bharti Airtel and it would finance the acquisition via debt.

According to SingTel’s CEO International Lim Chuan Po, in one way or the other the company will be part of the funding as the company is a very substantial shareholder of Bharti and there’s no compulsive decision that it need to go and spend money to maintain its stake to avoid being diluted.

However, analysts feel that instead of going for indirect exposure to the markets via its holding in Bharti Airtel, SingTel should consider bidding for Zain’s assets directly.

Tagged with: Acquisition • Africa • ASIA • Bharti Airtel • India • Singapore • SingTel • Zain

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

Zain Jordan considers LTE roll out

On 03.06.10, In Mobile, By Editor

www.WirelessFederation.com/news: A number of offers by international equipment vendors are currently being studied by Zain Jordan for the introduction of Long Term Evolution (LTE). Offers to build 4G infrastructure from companies like Motorola, Ericsson, Huawei and Nokia Siemens Networks is on Zain’s cards.

According to Zain CEO Abdel Malek Al Jaber, he is awaiting a decision by the telecoms watchdog, the TRC, on the award of the necessary licenses which will hopefully lead to the launch of a trial network later this year, ahead of an official launch in early 2011.

Tagged with: 4G • Ericsson • Essar • Huawei • Jordan • Long Term Evolution • LTE • Middle East • Motorola • Nokia • Nokia Siemens Network • Zain • Zain Jordan

Bharti Airtel might sell stake to repay loans (India)

On 03.04.10, In Mobile, By Editor

www.WirelessFederation.com/news: Fresh shares might be issued by Indian telco Bharti Airtel or it might divest its holdings in telecommunication infrastructure companies to reduce the burden of debt it must have to fund its acquisition of most of the African operations of Zain.

Medium-term debt, loans with a maturity period between one and ten years will fund the purchase and the money generated from operations as well as a likely equity issue will be used to repay the debt. A final deal is expected to be completed by end-April or mid-May.

According to Akhil Gupta, group deputy CEO and MD of Bharti Enterprises, the company will use a combination of free cash flow and equity to repay debt and there is a possibility to raise more equity at Airtel or Bharti Infratel level, but it has not taken any decision at this point. The company is expected to improve both revenue market share and EBITDA margins within a year or so of the takeover.

Tagged with: Acquisition • Africa • ASIA • Bharti Airtel • EBITDA • India • Zain

Zain, Asiacell receive favourable schedule for license payments (Iraq)

On 03.03.10, In Mobile, By Editor

www.WirelessFederation.com/news: More favourable terms have been provided to Iraqi mobile operators Zain and Asiacell for paying their government license fees, in exchange for a pledge to improve services.

The services of the companies will be monitored for a year by the government and after meeting the service standards the balance of the fees due over five years can be paid by them. Zain and Asiacell have already paid USD 625 million each of the total licenses cost of USD 1.25 billion.

Last year the government slapped fines totaling more than USD 20 million dollars on Zain, Asiacell and the third operator Korek for poor service and for not honoring contracts.

Tagged with: ASIA • Asiacell • Iraq • Korek • License • operator • Zain

MTN, Bharti & Zain emerge as highest revenue generators

On 03.03.10, In Mobile, By Editor

www.WirelessFederation.com/news: Over the last three years, an average growth of 45% in the revenue has been recorded by 16 leading service providers. The wireless service providers in Africa, Latin America, the Middle East, India and China achieved the highest growth.

MTN, Bharti and Zain have doubled their revenues in the last three years, thus leading the growth charge. Even larger companies like America Movil, China Mobile and Vodafone have recorded growth in the 45%-70% range.

Collectively generating over 55% of their revenues from beyond their home markets, Telefonica, Deutsche Telekom and France Telecom have all taken great strides in the past to build businesses beyond their home countries.

Tagged with: Africa • ASIA • China Mobile • Deutsche Telekom • France Telecom • India • Latin America • Middle East • MTN • Telefonica • Vodafone • Zain

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’s debt ratings to downgrade following Zain acquisition (India)

On 02.26.10, In Mobile, By Editor

www.WirelessFederation.com/news: Fitch Ratings has placed Indian telco Bharti Airtel on Rating Watch Negative (RWN) and expects that the ratings might go down by one mark if its deal with Zain is completed and substantially debt funded. Bharti has been included in the list following its potential acquisition of Zain’s African assets for around US$10.7 billion.

The potential costs associated with any bid for a 3G license and related CAPEX can further downgrade the rating. The uncertainties surrounding the targeted turnaround of the loss-making operations of Zain’s African assets have been taken into account by RWN.

Fitch expects the combined entity to assume the net debt of US$1.7 billion present at end-September 2009 on Zain’s balance sheet at end-September 2009 relating to its African operations.

Tagged with: 3G • Acquisition • Africa • ASIA • Assets • Bharti Airtel • CAPEX • India • RWN • Zain

Etisalat inches closer to Korek acquisition (Iraq)

On 02.23.10, In Mobile, By Editor

www.WirelessFederation.com/news: The long-anticipated acquisition of a majority stake in Iraqi mobile network operator; Korek Telecom by the UAE based Etisalat seems to be on the verge of completion. The talk between the two companies has been going on since September 2008.

Zain, Asiacell and Korek Telecom are the three operators in the country. Orascom owned the Iraqna network, but failed to get an operating license in the last round of auctions and had tried to set up a joint venture with Korek Telecom but that fell apart. Iraqna was later sold to Zain.

Etisalat may seek to raise funding via bonds to expand into up to six additional markets, including a possible acquisition of Orascom Telecom’s troubled Algerian subsidiary, Djezzy.

Tagged with: Acquisition • Algeria • ASIA • Asiacell • Auction • Djezzy • Etisalat • Iraq • Iraqna • Korek Telecom • LG • operator • Orascom • UAE • Zain

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