BHARTI AIRTEL ZAIN DEAL ANALYSIS PDF
Bharti Airtel management confirmed that it is in exclusive talks with Zain for buying the African assets of Zain (15 countries excluding Sudan. Bharti Airtel, India’s largest telecom company by subscribers, has tried twice to enter the African market through a merger with MTN of South. Bharti Airtel – Zain Deal Analysis Prepared by Deepali Rai 09FN Parvesh Bansal 09FN Rohit Sharda 09FN Sahil Pabby 09FN 31/12/
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Besides, some operations are showing losses because of mismanagement. If there is a problem on any of these fronts, it could make the deal zani more expensive.
Absolutely no coordination between them. Although the funding pattern is yet to be worked out, the consensus view is that it will be entirely in debt. Everyone seems to agree that Zain is a good target for acquisition, but is it worth the price Bharti is paying?
Bharti could run into integration problems in Africa. There may also be synergies in terms of network equipment procurement, transfer of best practices from Indian mobile market.
As is the case with every merger, cultural factors will influence how the two companies will integrate their operations. But the Zain corporate culture is imbued with his go-getting style.
We are also very happy that the Indian business model, that is the talk of the world, is now going global.
Bharti profit falls 27% on Zain deal
A few days before the Bharti deal was announced, Al Barrak announced his resignation, which was promptly accepted. Mittal says his team is working out the details of various funding options.
The Bharti-Zain deal is also likely to usher in a year of mergers and acquisitions for India Inc. He worked hard to convert dral Kuwaiti telecom operator into a global one. The target set for was to be among the top 10 telecom companies in the world with more than million customers.
Bharti-Zain deal – Weak Signals for Airtel
TRAI is supposed to make an audit of the billing system periodically. All calculations have been made and there analysiss no issue over which we need to fret. Log In or sign up to comment. How many millions bhartj subscribers have been conveniently duped like this? Neither of them happened in my case. MTN is a major competitor in most of the markets.
The principal issue is one of valuations. There can be no assurance that a transaction will be consummated. Was shocked to find after 3 months that they have charged for PC Secure An useless n unknown Antivirus software and Online Desktop storage without any written or verbal confirmation whatsoever from my end. Almost every research house has been critical of the deal. Yet the proposed deal has given rise to misgivings. Only the Zain board has to give a go ahead, and we have to pay.
Talk to the people at Bharti and they will tell you off the record that they expect this deal to be smooth sailing. Many view private equity firms as villainous actors intent on the singular goal of profit. Over time, high minutes of traffic can be generated with lower dilution in ARPU.
Bharti Airtel – Zain Telecom Deal Analysis | Dalal Street
It is an all-cash deal and there is no issue of stock trading. If valuations are a cause for concern, raising the money is not. Airtwl of the 15 countries reported losses.
However, given Africa is characterized by low minutes of usage currently; Bharti is likely to transport its low cost model to Africa which has the potential to improve usage significantly. Other issues, too, could impact valuations.
The note is, of course, a measure of caution. Additional Reading Management Finding the Virtue in Private Equity Firms Many view private equity firms as villainous actors intent on the singular goal of profit.
African Venture: Promises and Pitfalls of Bharti’s Deal with Zain – [email protected]
These numbers can be used to paint an optimistic picture or a pessimistic one. Ziroom is the leader in apartment rental services. It was known at that time as Zin.
For instance, low penetration rates could mean either a huge upside opportunity or lack of demand needing many years of expensive market development.