Bharti Faces Hurdle on Zain Nigeria in $10.7 Billion Purchase

Bharti Airtel Ltd.’s plan to buy most of the African assets of Kuwait’s Zain for $10.7 billion may face challenges even before it begins its due diligence.

India’s largest wireless company’s plan can’t include Zain’s Celtel Nigeria B.V. unit until an ownership dispute with Econet Wireless Holdings Ltd. on that business is resolved, Econet Chief Executive Officer Strive Masiyiwa said.

“Zain Nigeria is not for sale,” Masiyiwa said in an interview in Johannesburg today.

For Bharti, troubles in Nigeria, Africa’s most-populous nation and the continent’s fastest-growing telecommunications market, may be an indication of what it might be up against in the 15 countries where it’s seeking to take over Zain’s operations. Kuwait’s Mobile Telecommunications Co., or Zain, and Bharti said in statements today that they will hold exclusive talks until March 25 on the assets.

“If there are 15 companies in which you are taking a stake, then there are going to be 15 different complexities,” said Jigar Shah, senior vice president of Kim Eng Securities Pvt. in Mumbai. “It’s doubtful that a company like Bharti hasn’t foreseen this.”

Bharti fell as much as 9.6 percent in Mumbai trading, the most since Oct. 6. Zain shares were suspended from trading in Kuwait. They last traded on Feb. 11 when they advanced 3.9 percent to 1,080 Kuwaiti dinars. The stock has soared 23 percent in the last week, giving the company a market value of 4.64 billion Kuwaiti dinars ($16 billion). link....