Kuwait’s Zain said on Tuesday it expects to make returns of up to US$5bn from selling its operations in Africa to India’s Bhrati Airtel for $10,7bn dollars.
Under the agreement, Bharti is to pay $10bn when the deal is completed and the remaining $700m after one year of signing the agreement, the company said in a statement on Kuwait Stock Exchange’s website.
The sale of operations in 15 African nations will increase the company’s shareholders’ equity by $9bn, it added. Zain’s operations in Sudan and Morocco are excluded.
“After paying certain commitments, the company expects to achieve returns of up to $5bn,” the statement said.
Following the announcement, Kuwait’s bourse lifted a freeze on the company’s shares that was imposed on Sunday. Its share price immediately shot up by 9,3%. — Sapa-AP
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