Zain's Africa asset sale is strategic move

Kuwaiti telecom group Zain's decision to sell its African assets is a strategic move and not due to financial pressures, a newspaper report said on Friday, citing one of the firm's main shareholders.                                           

"We sold because we wanted to concentrate on the Middle East and Bharti wanted to get into Africa," Nasser al-Kharafi, head of the Kharafi Group, told the Financial Times. "It's a fair price and opportunity for both of us."                                           

The Kharafi group, one of Kuwait's largest family businesses, owns 11.47% of Zain through one of its units.                                           

Bharti Airtel is in exclusive talks to buy most of Zain's African business, the Indian firm's third attempt at gaining a foothold in a continent that offers a last opportunity for major subscriber growth.                                           

Under the exclusivity period, the companies have until March 25 to seal the $10.7 billion deal, which would be the second largest in the industry this year after Mexican tycoon Carlos Slim's move to consolidate his telecoms empire.                                           

Kharafi told the paper while the family firm was affected by the crisis, it was still making operational profits.                                           

"And things are improving every day," he added.                                           

Zain pulled back from an expansion spree last year, rejecting an offer from France's Vivendi for its African assets.