Six Leading Global Investors to invest USD 1.25 Billion in Airtel Africa through primary equity issuance
Deepthi | Myequity news | Date : 24-10-2018 10:45:00 IST
Airtel Africa Ltd, a UK incorporated subsidiary of Bharti Airtel Ltd., today announced that six leading global investors comprising Warburg Pincus, Temasek, Singtel, SoftBank Group International and others have agreed to invest USD 1.25 billion through a primary equity issuance in the company at a post money equity value of ~ USD 4.4 billion. Airtel Africa has seen a turnaround of its business in recent years. This investment demonstrates the confidence of leading global investors in the company’s ongoing robust growth and profitability. The investment also reinforces the increased growth potential of the Africa telecommunications sector.
The proceeds will be used to reduce Airtel Africa’s existing debt of approx. USD 5 billion and for growth of its African operations. Airtel Africa subsequently intends an Initial Public Offering and use the proceeds primarily for further reduction of debt. The present transaction will not involve any sale of shares by existing shareholders. About Bharti Airtel Limited:
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. 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.”
Bharti Airtel Limited is a leading global telecommunications company with operations in 16 countries across Asia and Africa. In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed home broadband, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G, 4G wireless services and mobile commerce.