Zain receives final payment of $700m from Bharti Airtel for Africa assets sale

Kuwait-based telecoms company, Zain says it has received the final payment of $700 million from Bharti Airtel of India for the sale of its African assets.

Bharti Airtel bought the assets of Zain in Africa for a record sum of $10.7 billion in June 2010. The World Bank described the deal as one of the largest global acquisitions of that year.

Zain says in a statement that it has informed the Kuwait Stock Exchange that it has received the final payment of $700 million from the sale of its African assets.

“With reference to the June 8, 2010 sale of Zain’s African assets (with the exception of Morocco and Sudan), and specifically to the deferred installment of  $700 million, we would like to inform you that the company has received this amount, in accordance with the agreement of the transaction, in which the sum was to be paid one year after the transaction, conditional on the completion of both the final approvals and of the sale and transfer of property,” the statement said.

According to Zain, the funds will further strengthen the company’s financial position, adding that, “although it must be noted that the amount was calculated as profits in the financial statements of the second quarter of 2010, and therefore will not have any effect on the financial statements for the current quarter of 2011.”

By Emmanuel K. Dogbevi