Airtel Africa announced Wednesday, October 24 a fund raising of $ 1.25 billion from six international investors.
In its statement, released yesterday, the company said that the Japanese SoftBank Group, the US Warburg Pincus SingTel and Singapore and Temasek Holdings were part of the tour de table. Raghunath Mandava, Africa Managing Director of Bharti Airtel, quoted in the note above, “highlights the confidence of the world’s leading investors in Ateltel Africa’s successful business strategy and ability to support growth and profitability” .
Specifically, the fundraising resulted in the subscription of a new issue of shares, which will result in a de facto dilution of the stake of Bharti Airtel in its African subsidiary, from 93% to about 65%. SingTel, which holds a 39.5% stake in Bharti Airtel, will invest $ 250 million for a direct stake of 5.7% in Airtel Africa. The transaction, which values Airtel Africa at $ 4.4 billion, should not result in any sale of shares by existing shareholders and will primarily serve to “reduce Airtel Africa’s debt, which is currently 5%. billions of dollars, and to finance the growth of its activities in Africa.
The company also reiterated its intention to proceed with its IPO; information that was first revealed in February 2018 by Reuters, which then indicated that Bharti Airtel was considering an IPO of its holding company in charge of African activities. Since then, three investment banks have been chosen in September to prepare for listing in London, but no timetable has yet been advanced by the Indian group.
Active in 14 African countries (Chad, DRC, Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria, Rwanda, Seychelles, Tanzania, Uganda and Zambia), Airtel Africa is the second largest telecommunications group in sub-Saharan Africa, with over 91 millions of subscribers, behind MTN (98 million).
