An Indian firm Vavasi Telecom is trying to rope in Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited to pick up a stake in Zain.
During the exclusive agreement, Bharti would assess the financial parameters and other related issues, including regulatory norms that are needed to be in place for the deal that could make Bharti among the top 10 operators globally.
State-run BSNL Friday said it may directly talk to Zain Telecom to acquire a controlling stake after the exclusive talks period between the consortium Vavasi and the Kuwaiti firm ends.
The race for control of Kuwait-headquartered Zain Telecom has quickened with the Indian consortium led by Delhi-based Vavasi group saying it is willing to give a majority stake in the consortium to state-owned Bharat Sanchar Nigam Ltd or Mahanagar Telephone Nigam Ltd, depending on which company gets government approval to go ahead with the deal.
Asked if BSNL is looking to approach Zain directly, he said "no further progress as far as this proposal on Zain is concerned".
Vavasi group, a New Delhi firm with diverisifed interests, on Wednesday said it would approach government-owned BSNL and MTNL to join in doing due diligence of Kuwait's Zain Telecom.
The idea is to reduce capital investments and improve profitability.
Has already invested $13 bn and needs another $9 bn to expand business, even as cash demands rise at home
India's largest cellular service company Bharti Airtel will invest $600 million in Nigeria's mobile market following its take over of Zain Telecom's African business for around SUD 10.7 billion.
In what could give jitters to players like Nokia, Samsung and other such stables, Bharti on Sunday announced its entry into the fast-growing mobile handset business.
The company had already sought bids to set up towers in countries like Nigeria, Kenya and Tanzania, said sources. Bharti is giving these orders market wise, instead of one bulk order.
ontinuing its acquisition spree in the international market, Bharti Airtel on Wednesday said the company will acquire 100 per cent stake in Telecom Seychelles for $62 million (about Rs 288 crore).
A consortium comprising India's telecom PSUs BSNL and MTNL, among others, on Monday said it has started negotiations for acquiring control of Kuwait's biggest phone company Zain Telecom that has presence in 24 countries.
Leading telecom operator Bharti Airtel on Wednesday said it has earmarked a capital expenditure of $3.1 billion (over Rs 14,000 crore) for India and other global operations in the current fiscal.
State-owned Bharat Sanchar Nigam Ltd (BSNL) is likely to exit the consortium comprising Delhi-based Vavasi Group and Malaysia's Al-Bukhary to acquire 46 per cent in Kuwait's Zain Telecom.Talks, which have been on for two months, have fallen through over valuations, and Vavasi is expected to announce a new consortium partner in a week or two. Vavasi Group Managing Director Farid Afruddin declined to comment on this information.
A consortium led by Delhi-based Vavasi group has sent feelers to China Mobile, the world's largest telecom company, for a possible joint bid for Zain Telecom, adding another element of complexity to the battle for the Kuwait-based company that involves India's two state-owned telecom service providers.
The company is looking at prepaying a part of the debt. It would be in the range of $800-900 million, Bharti Group chief financial officer Manik Jhangiani said.
Bharti Airtel is counting on its "endearing" brand to build on its acquisition of Zain Telecom's African operations. In addition, it aims to do what Indian companies are getting increasingly known for: Reduce costs.
A new dimension will be added to the India's growth story by Bharti Airtel's acquisition of Kuwait's Zain Telecom, besides enhancing the country's brand equity
With competitive pressures increasing at home, Bharti is making a third attempt to gain a foothold in the African market.
It also had other suitors like French company Vivendi, Egyptian company Etisalat and even MTN.
Essar group, which is buying out the Uganda and Congo assets of Warid Telecom -- a joint venture between the Abu Dhabi Group and Singtel and is present in Kenya, has also reportedly been sounded out by Zain shareholders. A company spokesperson, however, declined to comment on the issue.
Zain Telecom on Wednesday said it would earn $3.3 billion from sale of its African assets to Bharti Airtel for $10.7 billion even as the Indian operator said the deal is well-priced.
The loans in rupees would cover any associated transaction costs. Standard Chartered Bank, State Bank of India and Barclays are the major contributors to this debt portfolio.
Bharti Airtel said it might look at diluting some of its equity either at Bharti Airtel or at its tower subsidiary as one of the options to fund the $10.7-billion acquisition of African assets of Zain Telecom.
BSNL, MTNL respond to Vavasi despite advice to the contrary
Not too much is known about the middle-aged Arifuddin who is Vavasi's major shareholder, except for the fact that he is a civil engineer from Karnataka and started the group around a decade ago.
It is not clear, however, whether the two players are considering a majority stake or would be content as investors with 26 per cent.
As global economies contract because of the Covid-19 pandemic, the focus of most of the India Inc has now moved back to the home market where demand is expected to pick substantially from the coming festival season.
The company faces $3-bn payout to Econet Wireless.
But, unlike its competitors, it did not have a comprehensive infrastructure back-end and required fresh investments.
Several high profile companies are burdened with losses, mounting debt and have a huge load of operational costs.
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