India Bharti closes $10.7 Billion Zain Africa deal

The $10.7-Billion deal, including $1.7 Billion of Zain's debt, was signed in Amsterdam, the base of Zain's African unit on March 30. Bharti Airtel will pay $ 7.9 Billion ($ 400 Million will be paid in 6 months) once the transfer of assets is completed and another $700 million after one year.

In fulfillment of its debt obligations, Zain has repaid the $4 Billion Revolving Credit Facility which the company entered into in July 2006. Zain has so far made $2.7 Billion in profits from the sale of its African assets to India’s Bharti Airtel, which will be booked in the second quarter of this year.

With Zain Africa's 42 million customers, Bharti Airtel will have over 180 million subscribers in 18 countries, making it the world's fifth-largest mobile phone operator. The deal will also give Bharti a firm foothold in the relatively untapped African market and the combine will have revenues of $13 Billion and EBITDA of around $5 Billion.