Nwabu

Is Zain Africa worth $12 Billion?

At a valuation of 12 billion it values each subscriber in its african operations at around $290 which is a little more than what Zain bought it for in 2003 when it spent $3 billion on an operation that had less than 6 million subscribers. The difference between then and now is that growth is slowing and ARPUs are falling continent-wide and with equity markets in free fall (Zain was looking at an LSE listing) this is the best time to get out.