Is the Sun Setting on Zain?

The rumor mill has it that the mysterious ‘French company’ trying to buy Zain is actually Orange Telecom. That would make perfect sense as I can’t think of many other French companies with a few billion dollars lying around to make major mobile operator acquisitions…

The Zain brand has only been in the Kenyan market for less than a year, but if developments within the Zain Group in the last few days are anything to go by, it may be on its way out.

On Tuesday, media reports indicated that the Zain Group, the Kuwaiti based mobile telecommunication company with operations in 22 countries in Middle East and Africa, may agree to a deal to sell its African operations to a French company for up to USD 12 billion.

The media reports about the impending sale first appeared in the Kuwait-based Al Qabas daily reports. People familiar with the matter told the paper that Zain was waiting for a reply from the French company this week.

If the deal between Zain and the French company does not go through, Zain will study bids made by Chinese and European companies. But if it sails through, the French company will also buy Celtel Africa’s debts, which will be discounted from the African telecom operator’s price.

Asked for comment, Michael Okwiri, Zain Kenya communication director, was noncommittal only saying there is no official communication on the recent development.

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