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Wed 9 Jun 2010 12:33 AM

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Zain says African sale profits are $2.7bn so far

Company said that profit figure is based on money received so far from the deal.

Zain says African sale profits are $2.7bn so far
SALE PROFITS: Kuwaits Zain said that it has so far made $2.7bn in profits from the sale of its African assets to Indias Bharti Airtel. (Getty Images)

Kuwait's Zain has so far made $2.7 billion in profits from the sale of its African assets to India's Bharti Airtel, the company's chairman told Arabiya TV on Tuesday.

By the time Zain receives all its dues from the deal, the figure will be higher, the company's Chairman, Assad al Banwan, told the Dubai based TV hours after the two telecoms majors closed the $9 billion deal.

Banwan said: "The profit we informed the (Kuwait) Stock Exchange committee of was about $2.7 billion," adding the figure was based on the money received so far from the deal.

In March, Bharti struck a deal to buy the Kuwait firm's mobile operations in 15 African countries. Both Bharti and Zain on Tuesday confirmed that the deal had been closed.

Earlier on Tuesday, Zain said it received $7.87 billion from Bharti, and expects to receive the rest within 12 months.

Banwan said the profit would be booked in the second quarter of this year. (Reuters)

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