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Journalism of Courage
Telecom giant Bharti Airtel today said it would pay about USD nine billion (nearly Rs 44,000 crore) to buy African assets of Kuwait-based Zain,announcement of which pulled down Indian firms share prices by 13 per cent in two days.
The total agreed Enterprise Valuation of USD 10.7 billion is likely to result in a total payout of around USD 9.00 billion based on the estimated net debt of approximately USD 1.7 billion as on 31st December 2009, Bharti said in a statement here.
Companys statement comes in the wake of Bhartis shares lost Rs 40 a share to close at Rs 272.45 per share since yesterday leading to erosion of market capitalisation by about Rs 16,000 crore to Rs 1.03 lakh crore.
Of the USD 9 billion payout,Bharti would be paying USD 8.3 billion immediately after the deal and the remaining USD 700 million after one year.
Meanwhile,Zain telecom today said that it expects returns worth USD 5 billion from the sale of the companys African assets to Bharti Airtel.
Asked to clarify about the USD 10.7 billion valuation Bharti had announced yesterday,the company officials said this is an enterprise value that includes debt and equity.
