BHARTI AIRTEL ZAIN DEAL ANALYSIS PDF

A quick look at the Zain September data nine months of the year only gives us a view of what Bharti is buying. As you might notice, Nigeria is the bull in the room. They can definitely improve some bits tower costs in Africa have been 4x more than India, which can be lowered and internal efficiencies can be improved. The local mafia in Africa will be tougher to handle they take the lucrative deals and back-peddle commissions where in India Mittals political connections would have helped in the early stages. Im not taking a short term call on this stock.

Author:Tojalkis Fauzilkree
Country:Belarus
Language:English (Spanish)
Genre:Technology
Published (Last):23 March 2006
Pages:264
PDF File Size:7.37 Mb
ePub File Size:18.22 Mb
ISBN:420-1-43391-247-3
Downloads:54275
Price:Free* [*Free Regsitration Required]
Uploader:Goltik



With significant operations in Singapore and Australia through wholly- owned subsidiary SingTel Optus , the Group provides a comprehensive portfolio of services that include voice and data services over fixed, wireless and Internet platforms.

Zain bought 67 companies in 13 African countries, all of which it is now selling to Bharti Airtel. Regulation 13 of the ODI Regulations permits a wholly owned subsidiary set up by an Indian company to set up a step down subsidiary. According to Regulation 5 b of the Guarantees Regulations, a company in India promoting or setting up outside India, a joint venture company or a wholly-owned subsidiary, may give a guarantee to or on behalf of the latter in connection with its business; provided that, the terms and conditions stipulated in the ODI Regulations for promoting or setting up such company or subsidiary are complied with.

The Competition Act seeks to: prohibit anti-competitive agreements including cartels; prohibit abuse of dominant position; and regulate combinations mergers and amalgamations, and acquisitions. The provisions relating to i anti-competitive agreements; and ii abuse of dominance were made effective from May 20, However, the provisions relating to regulation of the combinations are yet to be notified.

If substantive provisions relating to Combinations are notified, would it have a bearing on the current acquisition? In terms of the Competition Act, parties to the proposed combination must determine whether the proposed transaction triggers the applicable threshold limits viz. Once such notification has been made to CCI, CCI shall do its due investigation on the basis of the criterion laid down under the Competition Act inter alia level of combination of the market, market shares to determine whether the acquisition causes or is likely to cause an adverse appreciable effect on competition within the relevant market in India and the CCI shall give its ruling within a maximum period of days.

Further, the Competition Act provides for extra territorial jurisdiction of the CCI to probe into an overseas acquisition if it causes or is likely to cause an adverse effect on competition in relevant market in India. Consequently, Econet tried to prevent the sale of the shares to Zain through the UK courts, but the judge ruled that the UK was not the appropriate place for such legal proceedings as the matter was more closely connected with Nigeria. Since then, Econet has commenced ongoing legal proceedings in the Nigerian courts.

Econet has also applied for interim measures to prevent Zain from selling, transferring, disposing of, dealing with or otherwise encumbering the disputed stake until the matter is resolved.

Considering that till the time the ownership issue over Zain Nigeria is resolved, Zain faces a hurdle in transferring its Nigerian assets to Bharti Airtel.

BERNARDO SORJ PDF

Bharti-Zain Deal Analysis

There can be no assurance that a transaction will be consummated. Further announcements will be made in due course. Talk to the people at Bharti and they will tell you off the record that they expect this deal to be smooth sailing. Only the Zain board has to give a go ahead, and we have to pay. Almost every research house has been critical of the deal. Everyone seems to agree that Zain is a good target for acquisition, but is it worth the price Bharti is paying? Seven of the 15 countries reported losses.

BLUE ZONE DAN BUETTNER PDF

African Venture: Promises and Pitfalls of Bharti’s Deal with Zain

Tygora For instance, low penetration rates could mean either a huge upside opportunity or lack of demand needing many years of expensive market development. Also, though Mittal says that no government permissions are necessary in fact, both India and Kuwait have welcomed the dealthe telecom regulators of all the countries will have to approve the takeover. Bharti could run into integration problems in Africa. But Zain is in a different league. But new Wharton research provides better insight into the benefits of PE buyouts. MTN is a major competitor in most of the markets.

CD4047 DATASHEET PDF

Bharti Zain Deal

With significant operations in Singapore and Australia through wholly- owned subsidiary SingTel Optus , the Group provides a comprehensive portfolio of services that include voice and data services over fixed, wireless and Internet platforms. Zain bought 67 companies in 13 African countries, all of which it is now selling to Bharti Airtel. Regulation 13 of the ODI Regulations permits a wholly owned subsidiary set up by an Indian company to set up a step down subsidiary. According to Regulation 5 b of the Guarantees Regulations, a company in India promoting or setting up outside India, a joint venture company or a wholly-owned subsidiary, may give a guarantee to or on behalf of the latter in connection with its business; provided that, the terms and conditions stipulated in the ODI Regulations for promoting or setting up such company or subsidiary are complied with. The Competition Act seeks to: prohibit anti-competitive agreements including cartels; prohibit abuse of dominant position; and regulate combinations mergers and amalgamations, and acquisitions.

Related Articles