India’s largest mobile service operator Bharti Airtel and Zain have agreed to enter into exclusive discussions until 25 March 2010 for the acquisition of Zain’s African unit (Zain Africa BV) based on an enterprise value of USD 10.7 billion. This potential transaction does not include Zain’s operations in Morocco and Sudan and remains subject to due diligence, customary regulatory approvals and signing of final transaction documentation.
If the deal is successful, Bharti Airtel will become an telecom operator in 15 countries in Africa named Burkina Faso, Chad, Democratic Republic of the Congo, Republic, Gabon, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia.
According to the Airtel statement :There can be no assurance that a transaction will be consummated. Further announcements will be made in due course”