Zain receives $295.4 mln from Bharti for Africa sale

Zain receives $295.4 mln from Bharti for Africa sale

Zain and Bharti closed a $9 billion deal for the Kuwaiti firm's African assets excluding Sudan and Morocco.

August 5, 2010 10:57 by Reuters

Kuwaiti telecom firm Zain said it received $295.4 million from India’s Bharti Airtel, as part of the sale of its African assets.

In June, Zain and Bharti closed a $9 billion deal for the Kuwaiti firm’s African assets excluding Sudan and Morocco. Zain had received $7.87 billion after the closing, and said it would receive a further $400 million within 12 months after completing other formal requirements. “The firm had received $295.4 million after deducting expenses, from Bharti, and (this amount) will be booked in the third quarter results of this year,” Zain said in statement to the Kuwaiti bourse on Thursday.

The amount received is part of the $400 million, a Zain spokesman told Reuters. The remainder $100 million is expected to be received within the next ten months, the statement said.

Zain will also receive another $700 million after one year of the deal closing, as agreed in March.

Zain shares were trading 1.7 percent lower on the Kuwait bourse Thursday.

(Reporting by Eman Goma; Editing by Dinesh Nair)