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1 Bharti - Zain Deal Telecom Overseas Asset Acquisitio N Company KSC

This document summarizes the Bharti-Zain deal, an overseas asset acquisition in the telecom industry. Bharti Airtel acquired Zain Africa International BV from Mobile Telecommunications Company KSC for USD 10.7 billion. Bharti Airtel would pay USD 8.3 billion within 3 months, USD 700 million after 1 year, and assume USD 1.7 billion of Zain's debt. Bharti Airtel obtained funding from dollar and rupee loans from banks including Standard Chartered, Barclays, and SBI Group. The deal involved regulations around foreign security transfers, guarantees, antitrust laws, and right of first refusal.

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95 views5 pages

1 Bharti - Zain Deal Telecom Overseas Asset Acquisitio N Company KSC

This document summarizes the Bharti-Zain deal, an overseas asset acquisition in the telecom industry. Bharti Airtel acquired Zain Africa International BV from Mobile Telecommunications Company KSC for USD 10.7 billion. Bharti Airtel would pay USD 8.3 billion within 3 months, USD 700 million after 1 year, and assume USD 1.7 billion of Zain's debt. Bharti Airtel obtained funding from dollar and rupee loans from banks including Standard Chartered, Barclays, and SBI Group. The deal involved regulations around foreign security transfers, guarantees, antitrust laws, and right of first refusal.

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z
Copyright
© © All Rights Reserved
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Sr No: Name Deal Type Parties Involved Industry

Acquirer - Bharti Airtel Limited


Overseas Seller - Mobile Telecommunications
Asset Company KSC
1 Bharti - Zain Deal Telecom
Acquisitio Target - Zain Africa International BV
n
Deal Process eloborated in Appendix.

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Mode of Deal

Security (Share) Sale:


Consideration - USD 10.7 B
Mode of Payment -
Bharti Airtel to pay:
a) USD 8.3 billion within three months from the date of
closing;
b) USD 700 million after one year from the date of closing;
and
c) USD 1.7 billion assumed as debt on the books of Zain.
Funding -
a) Dollar Loan: Bharti Airtel to borrow USD 7.5 billion
from a consortium of banks led by Standard Chartered
Bank and Barclays Bank.
b) Rupee Loan: Bharti Airtel to avail of a rupee loan of
USD 1 billion equivalent from SBI Group.
Laws Involved Legal Aspect Discussed

1. ODI Regulations - FEMA, 2004 - Transfer or Issue


of any Foreign Security
2. Guarentees Regulation - FEMA, 2000 - Regulation
5 (b) of Guarantees Regulations
3. Anti-Trust laws - Competition Act, 2002
4. "RoFR" - UNCITRAL, Nigeria
Comments Source

Acquirer
-
Seller -
Target -
Sr No: 1
Name Bharti - Zain Deal
Deal Type Overseas Asset Acquisition
Acquirer - Bharti Airtel Limited
Seller - Mobile Telecommunications Company KSC
Parties Involved Target - Zain Africa International BV

Deal Process eloborated in Appendix.


Industry Telecom

Security (Share) Sale:


Consideration - USD 10.7 B
Mode of Payment -
Bharti Airtel to pay:
a) USD 8.3 billion within three months from the date of
closing;
b) USD 700 million after one year from the date of closing;
Mode of Deal and
c) USD 1.7 billion assumed as debt on the books of Zain.
Funding -
a) Dollar Loan: Bharti Airtel to borrow USD 7.5 billion from
a consortium of banks led by Standard Chartered Bank and
Barclays Bank.
b) Rupee Loan: Bharti Airtel to avail of a rupee loan of USD
1 billion equivalent from SBI Group.

1. ODI Regulations - FEMA, 2004 - Transfer or Issue of any


Foreign Security
2. Guarentees Regulation - FEMA, 2000 - Regulation 5 (b)
Laws Involved
of Guarantees Regulations
3. Anti-Trust laws - Competition Act, 2002
4. "RoFR" - UNCITRAL, Nigeria

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