By John Oyuke
India’s telecom company Bharti Airtel has sealed the Sh823.9 billion ($10.7 billion) deal to acquire Zain Africa BV.
Under the agreement, Bharti will acquire Kuwait’s Zain’s African mobile services, operations in 15 countries, with an estimated total customer base of over 42 million.
The legally binding agreement between the two groups was signed at Amsterdam, the corporate headquarters for Zain’s African business.
Bharti Airtel Chairman and Managing Director, Mr Sunil Bharti Mittal, described the agreement as a landmark for the global telecom industry and a game changer for the Company.
"More importantly, this transaction is a pioneering step towards South-South co-operation and strengthening of ties between India and Africa," he added in a statement.He said Bharti would now be transformed into a truly global telecom company, with operations across 18 countries fulfilling vision of building a world-class multinational.
Fifth largest
"With this acquisition, Bharti Airtel will be the world’s fifth largest wireless company, with operations across 18 countries and a global telecom footprint expanding to 21 countries along with the operations in Seychelles, Jersey, and Guernsey.
Mittal said the firm is excited at the growth opportunities in Africa, the continent of hope and opportunity.
"We believe the strength of our brand and the historical Indian connect with Africa, coupled with our unique business model will allow us to unlock the potential of these emerging markets," he added.
He said the firm will partner with Governments in these countries to take affordable telecom services to the remotest geographies and bridge the digital divide.
Zain Group Chairman said, Mr Asaad Al Banwan noted that since acquisition of Celtel in 2005, the group has grown to become one of Africa’s leading mobile operators.
