Bharti shares, down 1 per cent on Bombay Stock Exchange
Bharti Airtel, the country's largest private telecom company, today fell by one per cent on the Bombay Stock Exchange, a day after the company announced entering into "definitive agreements" with Kuwait-based Zain Telecom to acquire the latter's African assets.business Updated: Mar 26, 2010 12:46 IST
Bharti Airtel, the country's largest private telecom company, today fell by one per cent on the Bombay Stock Exchange (BSE), a day after the company announced entering into "definitive agreements" with Kuwait-based Zain Telecom to acquire the latter's African assets.
Shares of Bharti Airtel were trading at Rs 310.30 on BSE, down by one per cent over previous close.
"The stock is in consolidation phase after gaining in previous trading sessions. The stock is under pressure as their is no clear picture coming out on the Bharti-Zain deal," SMC Capital vice-president Rajesh Jain said.
On the National Stock Exchange, the stock dipped 1.33 per cent to Rs 310.20.
A total of 1.96 lakh shares of Bharti Airtel changed hands on both the bourses.
"There are some doubts in the minds of investors as their is still no concrete statement regarding the deal. The stock will trade under pressure for a while as it had gained a lot," Jain added.
The two companies had entered into exclusive talks on February 15. Since then the stock has gained nearly 10 per cent to close at Rs 313.75 yesterday.
Bharti Airtel, yesterday, gave a positive indication of having clinched the mega $10.7 billion deal with Zain Telecom.
The company in a statement has said that Bharti is now working with Zain towards finalising the definitive agreements which would address all key terms and findings arising out of the due diligence.
The company added that definitive agreements are expected to be signed soon. Upon signing, the parties will move towards obtaining any required approvals.
With the acquisition, Bharti Airtel will enter the world's fastest growing market in Africa. The two businesses combined will have more than 165 million subscribers with total revenue of $13 billion.
Bharti has valued Zain's African assets at $10.7 billion.
The deal is likely to result in Bharti paying out around $9 billion based on the estimated net debt of approximately $1.7 billion as on December 31, 2009.
Bharti Airtel had last week tied up $8.3 billion debt with financial institutions to fund the transaction, while the remaining $700 million would be paid a year later.