wordpress blog stats
Connect with us

Hi, what are you looking for?

Airtel-Zain: Payout Of $9 Billion Expected; $255.38 Per Customer

Airtel has set an enterprise value of Zain Africa at $10.7 billion, with $10 billion to be paid on closing, and $700 million to be paid one year after the conclusion of the deal. Airtel expects a payout of around $9 billion, based on an estimate of $1.7 billion in debt, as of 31st December 2009. The proposal does not include Zains operations in Sudan (high ARPU) and its Morocco investment. There is also a break up fee of $150 million payable by either side, based on certain terms and conditions.

Price Per Customer

Note: ARPU has been calculated for the 9 month period ending September 30th 2009.

As of September 30th 2009, Zain had a total of 41.987 million customers spread across Africa. Taking into account the September customer base (though December data would be more apt), at $10.7 billion, Zain is being valued at $255.38 per customer. (Correction: had previously incorrectly calculated the amount as 2553.88 per customer. Thanks for correcting Vivek)

Zain expects net proceeds of up to $5 billion after repayment of certain liabilities, and for the proceeds to be reflected in the companys P&L during the second quarter this year. Following these developments, the Zain stock has risen for the second day in a row, reports Bloomberg.

Note that the proposal is subject to due diligence and regulatory approvals, and there are quite a few regulators that will have be dealt with.

Also read:

Zain Sellout Timline; Zains Acquisitions

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


The Ministry of Information & Broadcasting’s upcoming National Broadcast Policy will try to make it easier for cable television (TV) operators to provide broadband...


Amazon Prime Video has partnered with Airtel to offer a mobile-only version of Prime Video, which bundles tariffs and Prime Video Mobile at a...


BSNL and MTNL, the two state-owned telecom operators, turned EBITDA-positive and made some operating profit in the first half of the financial year ending...


Bharti Airtel on Sunday announced the appointment of Pradipt Kapoor as Chief Information Officer (CIO). “In his new role, Pradipt will drive Airtel’s overall...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to Daily Newsletter

    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ