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Kuwait-based Zain Group, has confirmed that it has received an offer of US$10.7 billion from Bharti Airtel of India to acquire its operations in Africa, excluding Morocco and Sudan. A statement issued exclusively to the Ghana News Agency by Zain Ghana, said "the Board of Directors of Kuwaiti the Zain Group, after its meeting on February 14, 2010, issued a resolution to accept a proposal received from Bharti Airtel Limited (Bharti) to enter into exclusive discussions until 25 March 2010, regarding the sale of its African unit, Zain Africa BV." The statement said Bharti's proposal implies an enterprise value of approximately US$10.7 billion with US$10 billion to be paid upon closing, whereas the remaining US$700 million will be paid one year after the conclusion of the deal. But the statement said Bharti's proposal was currently subject to due diligence, customary regulatory approvals and signing of final transaction documentation. "There can be no assurance that a transaction will be consummated," it said. Originally Zain posted a statement on its group website titled "Zain Statement on African Assets" but did not name the company seeking to buy its Africa operations. But the company later changed the title of the statement to "Zain in exclusive discussion with Bharti over sale of Zain Africa BV" to confirm the bidder was Bharti. Bharti Airtel was the same company linked with a failed attempt to acquire the MTN Group months ago. The statement said in the proposed sales agreement, there was a break-up fee of US$150 million applicable to both parties, adding that upon successful conclusion, the transaction would reflect an equity value of approximately US$9.0 billion for Zain Africa. "After the repayment of certain liabilities, Zain expects net proceeds of up to US$5 billion taking into consideration that Zain Group anticipates the expected proceeds when realized to be reflected on the company's profit and loss during the second quarter of this year," it said. Kharafi Group and other shareholders acquired Mo Ibrahim's former Celtel networks for US$3.4 billion in 2005 and re-branded it to Zain with 22 operations across Africa and the Middle East. Zain has for more than a year now repeatedly sought to either sell its African operations, or take an outside investor into the whole company. Meanwhile Kuwaiti Stock Exchange has suspended trading in Zain shares pending a board meeting to discuss the offer from Bharti Airtel, a statement on the Kuwaiti Stock Exchange website said. Zain Ghana acquired 100 per cent shares in Westel in Ghana and started operations less than two years ago. Recently a shareholder of Zain Nigeria, Broad Communications, secured an injunction against the company from managing its subsidiary in that country because Zain was destroying shareholder value. Experts have said the developments in Nigeria could have implications for the Bharti acquisition.