Airtel Africa Ltd. received a Ksh125 billion boost from six global investors as the company readies an initial public offering at an as of yet undisclosed bourse but one that the telco terms as a recognized international stock exchange.
The company’s plans to go public comprise an agreement with the six global investors through a primary equity issuance which Airtel Africa says will bring the firm’s post equity valuation to around Ksh440 billion.
Among the six global investors pumping Ksh125 billion into Airtel Africa include American private equity firm Warburg Pincus, Singaporean investment company Temasek, Japanese multinational SoftBank Group and Singapore telco Singtel.
The UK incorporated subsidiary of Indian global telco Bharti Airtel Ltd announced on October 24 that the transaction will not involve any sale of existing shares by Airtel.
Airtel Africa will use the equity proceeds to reduce the existing debt of around Ksh500 billion, and grow its business on the continent, a statement from the telco said.
Raghunath Mandava, MD and CEO, Africa, Bharti Airtel, said, “This primary equity issuance clearly underlines the confidence of leading global investors in Airtel Africa’s successful business strategy and its potential to sustain growth and profitability.”
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Airtel Africa said in the statement that it ranks among the top two operators in most of the African markets in which it operates, and that it expected to continue capturing the data demand market with its 4G services which are live in nine countries and in the process of rollout in others.
“The transaction will help us further deleverage our balance sheet and boost our capacity to upgrade networks, expand coverage in different markets and achieve rapid growth of Airtel Money across our operations,” Mr. Mandava added.
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