Zain Iraq Secures US$1.2bn Funding For M&A

Zain Iraq, the country's leading mobile operator, has secured a US$1.2bn financial package from the National Bank of Kuwait to support its acquisition of Iraqna, the Iraqi mobile unit of Egypt's Orascom Telecom. The agreement concludes the ongoing dispute surrounding the management of Iraqna. The latter failed to acquire a licence in the August 2007 auction, risking the loss of its GSM network. However, it managed to join forces with minor operator Korek Telecom, although once again, Orascom and Korek Telecom failed to agree on a corporate strategy, leading Orascom to sell Iraqna to Zain. A syndicate of 12 regional and international banks was brought together by the National Bank of Kuwait, raising a total of US$1.8bn.

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