Bharti moves to buy 20% minority Zain shares listed on LuSE

Bharti moves to buy 20% minority Zain shares listed on LuSE
By Chiwoyu Sinyangwe
Mon 21 June 2010, 12:50 CAT

BHARTI Airtel intends to buy the 20 per cent Zain Zambia Plc shares, a move which might lead to the biggest mobile company de-listing from Lusaka Stock Exchange (LuSE). And Celtel Zambia Pls share has continued to record steady gains amidst some movement, closing trading last Friday at K690 although coming down by K5.

This month, Bharti Airtel which is owned by Indian wealthy business Sunil Bharti Mittal recently completed the US $10.7 billion acquisition of Kuwait-based Zain's African franchise except in Sudan and Morocco.

In a public announcement to shareholders and the Zambian market by the sponsoring broker Pangaea Renaissance, Bharti Airtel intends to acquire the Celtel Zambia Plc shares which trade on the local bourse as Zain Zambia in accordance with the Securities Act.

Pangaea Renaissance stated that Bharti Airtel’s acquisition of Celtel Zambia Plc shares would depend on the minority Zambians selling their shares when the offer comes.

“Bharti intends to make a general offer to acquire the remaining shares of Celtel Zambia Plc which it does not currently own,” Pangaea Renaissance stated. “The effect of the general offer is to give eligible minority shareholders in Zain Zambia the opportunity to sell their shares, wholly, partially, or not to sell any of their shares, at their sole discretion, to Bharti, during the offer period when it is announced…”

Zain Zambia Plc is the country’s biggest mobile phone company with 3 million mobile telephone subscribers and was the only listed unit in all the African operations were Zain Group operated.

And LuSE stated that Celtel Zambia which listed in 2008 in the country’s biggest IPO, valuing the company at US $1.17 billion continue to trade very actively.

LuSE stated that Celtel Zambia share closed trading yesterday at K690 having listed at 640 kwacha two year ago.

“The all share index recorded a decrease of -0.23 per cent to end trading at 2,890.58 points,” LuSE stated on its website. “Celtel was the only security that recorded a price movement, it closed at K690, down by K5. A total of 18 trades were recorded, involving 96,260 shares worth K64.3 million.”