MUMBAI/KUWAIT: The board of Kuwaiti telecoms operator Zain has approved a $9 billion sale of most of its African assets to India's biggest
Due diligence on the deal, which will extend Bharti Airtel's reach into African emerging markets dramatically, is completed and the sale documents will be signed with in several days, the sources said.
Spokesmen for Zain and Bharti declined to comment.
Bharti said on Sunday it had tied up the entire financing requirement of $8.3 billion, with major international banks committing to underwrite the amount, in a sign of progress as the deadline for exclusive talks with Zain expires on Thursday.
Bharti, which failed twice to acquire Africa's biggest mobile operator MTN Group, is desperate to expand in new markets, as cut-rate competition in its home market -- the world's fastest growing -- squeezes margins and clouds its growth outlook.
Zain's African businesses had been considered a natural target for Bharti, which has thrived in an Indian market with low incomes and tariffs and a heavily rural population -- characteristics shared by African nations.
Zain was keen to lock in what many regard as a high price offered by Bharti. The Kuwaiti group pulled back from an expansion spree last year and rejected an offer from France's Vivendi for its African assets. Bharti, 32-per cent owned by Singapore Telecommunications, has said it would pay a total $9 billion in cash to Zain, including $700 million to be paid one year after the deal closing. Bharti will also assume $1.7 billion debt on the target firm's books.
*****************************************
Cos in billion-dollar sales club
**************************************
Heard on the Street
Bharti Airtel execs may exercise stock
Many Bharti Airtel employees, who have got shares through the stock option programme, may choose to book profits, say brokers tracking the company. The stock options have been exercised at a sharp discount to the current market price which could be advantageous to the employees provided there is no lock-in period. Market players say the company can at its discretion, impose a lock-in period on the shares acquired though the exercise of stock options. Bharti Airtel has allotted 2.7 lakh shares in different lots at different exercise prices ranging from Rs 110.5 to Rs 206, in the last two weeks. The stock closed at Rs 307 on Tuesday, down 3% over the previous close.
Areva T&D jumps 10% on open offer talk
Areva T&D shares surged 10% on Tuesday on renewed buzz of a likely open offer by the Alstom-Schneider Electric combine. The stock closed at a near four-month high of Rs 306.85, with around 45 lakh shares changing hands on both exchanges combined. Alstom and Schneider Electric had jointly bought out Areva T&D’s French parent in November last year. After a brief spurt in early December, the stock has been moving in a narrow range, as traders accumulated the stock in expectation of an open offer.
NMDC counter buzzing with block deals
The NMDC stock fell over 6% in heavy trade on Tuesday to close at Rs 324.75, ahead of the allotment of the follow-on public offering shares. Market grapevine is that the shares will be alloted on Thursday. Many high net worth investors who have subscribed to the issue are said to have short-sold the stock, confident that they will be able to meet their delivery obligation on Friday, which is the pay-in session for Tuesday’s trades.
Punters say there has been brisk activity in the grey market for NMDC shares in the past couple of sessions, with most of the trades done at Rs 310 per share. Sellers in the grey market are expecting the stock to fall below Rs 310 once the follow-on shares are alloted. They hope to make a tidy profit by buying the shares from the regular market and meeting their grey market obligations. Around 33 lakh NMDC shares were traded on both exchanges combined.
Insurance major dumping Infosys stocks
The January-March quarter earnings of Infosys Technologies are still around three weeks away, but a leading insurance company is already a seller in the stock. Though there is no evidence to link the insurance major’s recent selling of Infosys stocks to the outcome of the results, many funds, in the past, have offloaded stakes quietly ahead of its earnings. But, the selling has had little effect on the stock, suggesting that there are enough takers for the stock. The stock closed at Rs 2,775.35, up 0.7% on Friday.
Contributed by Vijay Gurav, Santosh Nair & Nishanth Vasudevan
*****************************************
India Valuations
India Property
TTK Prestige Ltd
Deccan Chronicle
Jaiprakash Associates
Lanco Infratech
Balakrishna Industries
Piramal Healthcare
Hindalco
Infotech Enterprises
Src:Economictimes, DP blog and etc
