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Synopsis

on
A study of Acquisition of Zain Africa by Bharti Airtel
Submitted in Partial fulfilment of requirement of award of MBA
degree of

GGSIPU, New Delhi

Sumitted To:-

Submitted By:-

Ms. Kamayni
Kumar Sharma

Name:-Neeraj
Enrolment No:04515603913
Semester:- III
Sem
Batch: 2013-15

Northern India Engineering College

(Affiliated to GGSIPU)
FC-26, Shastri Park, Delhi-110053
Title- A study of Acquisition of Zain Africa by Bharti Airtel
Objectives:1. To study the various aspects of Acquisition.
2. To analyse the case study based on acquisition of Zain Africa by Bharti Airtel.
3. To study the pre and post performance of Zain Africa and Bharti Airtel.

Research Methodology:Methodology: Methodology is the basic framework and the approach that has to be followed to
carry out the approach used to collect the data, the sources of primary data, i.e., from where and
how it has been collected. Research Methodology is the way how we conduct our research. In the
present project type of research conducted is Quantitative research. Exploratory research is
undertaken which involves extensive scanning of secondary data. The best websites are
considered which gives all the efficient and effective information. References for the project are
from the websites and books and the companys annual reports.
Stastical tools: MS-EXCEL will use to prepare pie- charts and graphs and MS-WORD will use
to prepare or write the whole project report.
Time frame of the study: 2 years (2009-10 and 2010-2011) financial statements of Bharti Airtel
and Zain Africa.
Type of data used: Secondary data.

Literature Review:Acquisition: An acquisition or takeover is the purchase by one company of controlling interest
in the share capital, or all or substantially all of the assets and/or liabilities, of another company.
A takeover may be friendly or hostile, depending on the offeror companys approach, and may e
effected through agreements between the offeror and the majority shareholders, purchase of

shares from the open market, or by making an offer for acquisition of the offerees shares to the
entire body of shareholders.
Bharti Airtel Limited: Bharti Airtel limited, a group company of Bharti Enterprises is among
Asias leading integrated telecom services providers with operations in India, Sri Lanka and
Bangladesh. The company has an aggregate of around 137 million customers across its
operations. Bharti Airtel has been ranked among the six best performing Technology companys.
Bharti Airtel is structured as four strategic business units- Mobile, Telemedia, Enterprise and
Digital TV. All these services are provided under the Airtel brand. Airtels national high-speed
optic fiber network currently spans over 118,337 R kms across India.
Zain Africa: Zain Group is a mobile telecommunications company founded in 1983 in Kuwait
as MTS or Mobile Telecommunication Company, and was later rebranded to Zain in 2007. Zain
commercial presence in 8 countries across the Middle East and North Africa with about 46.1
million customer as of 31 December 2013. It employs over 6000 people.
Acquisition of Zain by Airtel in Africa:
Airtel acquired Zain at about US $ 10.7 billion to become the fifth biggest telecom major in the
world. Since Zain is one of the biggest players in Africa covering over 15 countries, Airtels
acquisition gave it the opportunity to establish its base in one of the most important markets in
the coming decade.
Bharti Airtel Limited Asias leading telecommunication service provider entered into a legally
binding definitive agreement with Zain Group to acquire Zain Africa. With the acquisition,
Bharti Airtel became the worlds fifth largest wireless company with operations across 18
countries.

Abstract:Airtel is the largest cellular services provider company of India. In the end of march 2010, Bharti
Airtel clinched the deal with Africas Zain and acquire in US $ 10.7 billion. After acquisition of
Zain, Bharti Airtel will become the 5th largest service provider in terms of number of subscribers.

Bharti Airtel choose Zain because Airtel wants to expand own business at big level and with this
acquisition they enjoy several opportunities like in Africa, the customer growth rates range from
14% in Kenya and 6% inNigeria to 51% in Niger and the average revenue per user is US $ 3 in
Ghana and US $ 25 in Gabon, compared to $ 5 of Bharti in India.
In the deal some challenges was involve like a heavy debt component with Bharti raising a huge
loan from the market and brand building will be a key challenge for Bharti Airtel.