Bharti Airtel moves up on its plan to mop up dollar loan for Zain acquisition
Bharti Airtel, the country’s largest telecom operator by revenue, is looking to mop up $8.5 billion worth of offshore loan to fund the acquisition of Zain’s African mobile operations, as mentioned in some media reports.
The scrip is currently trading at Rs 298.05 per share, up 3.30 points or 1.12% on the BSE.
The stock opened at Rs 297 compared to its previous close of Rs 294.75. Intraday, the counter has touched a high and a low of Rs 300.60 and Rs 294.50, respectively. So far 632000 shares of the company were traded on the BSE.
The stock of the face value of Rs 5 touched its 52-week high of Rs 495 on May 19, 2009 and a 52-week low of Rs 229.50 on November 27, 2009.
The promoters holding in the company as per December 2009 stood at 67.84%, FIIs and DIIs held 17.49% and 7.96% respectively while others were holding 6.71% stake in the company.
The report further added that the telecom major has also issued a term sheet to lenders for the same. The offshore facility is likely to consist of four phases and it will be for a period six years.
The company has opted for offshore loans over onshore loans owing to the good response from overseas banks. The dollar loan is expected to reduce risks involved in execution process.
Bharti is in exclusive discussions with Zain for the acquisition of the latter’s African unit — Zain Africa BV — based on an enterprise value of $10.7 billion. This potential transaction does not include Zain’s operations in Morocco and Sudan. The exclusivity period will last till March 25.
The Indian telecom major reported 14.61% jump in its December 2009 quarter net profit, which stood at Rs 2,312.10 crore as compared to Rs 2,017.29 crore for the year ago period.
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