Kolkata: Sunil Mittal-led Bharti Airtel will acquire up to an additional 5% in its Africa unit in one or multiple tranches in FY25 via all-cash deals, the nation’s second-largest telco said.
At present, Airtel owns 57.29% of Airtel Africa plc via Airtel Africa Mauritius Ltd (AAML) — a step-down Airtel subsidiary.
“The Special Committee of Directors, a duly authorised committee of the board, has approved an increase in shareholding of the company in Airtel Africa plc (a subsidiary company listed in UK), by acquisition of upto 5% stake in one or more tranches during FY25, through AAML).The acquisition shall be in accordance with the permitted modes and applicable laws,” Airtel said in an exchange filing Friday.
The company added that the acquisition would be undertaken for a cash consideration and at pricing, in accordance with applicable laws. The proposed deal would be concluded by end-March 2025.
At Airtel Africa’s current market capitalisation of Pound Sterling 5.07 billion (Rs 55,541 crore approx), a 5% stake would be worth around Rs 2,777 crore. Airtel’s cash & bank balances stood at Rs 6,024.4 crore in the quarter ended December 2024.
Bharti’s Africa business was recently hit by devaluation of the Nigerian naira, but it remains vital, generating 25% of Airtel’s consolidated revenues.
London-based New Street Research recently said Airtel’s Africa unit is seeing strong business resurgence and is set to pull ahead of rival telcos operating in the African continent, including MTN, Vodacom and Orange by recording the highest revenue growth in Year 2025.
It recently estimated that Airtel Africa will deliver 20.6% on-year revenue growth in Year 2025 vs 17.2% (MTN), 9% (Orange) and 6.8% (Vodacom).
Airtel has been operating in the African continent for nearly 15 years since it acquired the African assets of Kuwait’s Zain Telecom back in 2010 for $10.7 billion (about Rs 48,000 crore then). But its Africa unit has seen a business resurgence after it completed its first full year of profitability in FY18, marking a turnaround from the early years when losses had mounted every quarter.
Airtel Africa’s revival has been propelled by strong growth momentum of its mobile money business coupled with the turnaround of its mobile operations in its largest African market, Nigeria.
Going forward, key catalysts include the IPO of Airtel Africa’s mobile money business later this year.
