Zain, Bharti to sign letter of intent soon

KUWAIT: Kuwaiti telecoms firm Zain and India's Bharti Airtel are expected to sign a letter of intent for the $9 billion African assets deal this week, a Kuwaiti newspaper reported on Sunday.

The letter will include the official offer and the schedule of payment, al-Rai newspaper said in an unsourced report.

Bharti is in exclusive talks until March 25 to buy Zain's African business, excluding Morocco and Sudan. It is the Indian firm's third attempt at gaining a foothold in a continent that offers a last opportunity for major subscriber growth.

Another Kuwaiti paper, al-Anbaa, said Bharti is to meet on Sunday with a Kuwaiti Islamic lender about financing the deal. It did not provide further details.

Bharti had said it will have clarity by next week on funding its offer for Zain's operations in 15 African countries. The two firms have agreed on an enterprise value of $10.7 billion for the assets, including $1.7 billion of debt on Zain Africa's books.

The deal marks one of the biggest cross-border transactions in the Middle East in years and a turning point in the long-running saga around Zain, the third-biggest telecoms operator in the region.

Meanwhile, another report said Bharti has lined up $9 billion in loans from foreign and local banks for the planned acquisition.