Bharti Airtel in pact to acquire Millicom's operations in Rwanda, to get 370 million subscribers

Airtel at present operates in 15 African countries apart from India and South Asia.

PTI December 19, 2017 10:25:09 IST
Bharti Airtel in pact to acquire Millicom's operations in Rwanda, to get 370 million subscribers

New Delhi: Telecom operator Bharti Airtel today said that it has signed an agreement with Millicom International Cellular S.A. to acquire 100 percent stake in its Rwanda operation which operates under the brand name of Tigo Rwanda.

"Bharti Airtel Limited...has entered into a definitive agreement with Millicom International Cellular S.A. (Millicom) under which Airtel Rwanda Limited will acquire 100 per cent equity interest in Tigo Rwanda Limited," Bharti Airtel said in a statement.

Under this deal, Tigo's 370 million customers will join the network of Airtel Rwanda. The acquisition will make Airtel Rwanda the second largest operator in the country with revenues of over $80 million and a revenue market share of over 40 percent, the statement said.

"The consideration for the transaction is based on approximately 6x EBITDA multiple, payable over two years. The agreement is subject to regulatory and statutory approvals," the statement said.

Bharti Airtel in pact to acquire Millicoms operations in Rwanda to get 370 million subscribers

Reuters

Airtel at present operates in 15 African countries apart from India and South Asia.

"Airtel and Tigo have already merged their operations to create a strong viable entity in Ghana. Today, it has taken yet another important step to acquire Tigo Rwanda to become a profitable and a strong challenger in a two-player market," Bharti Airtel Chairman, Sunil Bharti Mittal said.

In the past, Airtel acquired assets in Uganda (Warid) and Congo B (Warid), Kenya (yu Mobile) and consolidated operations in Ghana (Millicom).

"We are also committed to the long term viability of our operations in two other countries i.e. Kenya and Tanzania, to ensure that in 2018 all our 15 operations in Africa start contributing positive margins and cash flows towards a healthy and profitable Airtel Africa," Mittal said.

Airtel is one of the largest telecom service providers across the continent in terms of geographical reach and had close to 83 million customers at the end of quarter ended 30 September, 2017, the statement said.

Updated Date:

also read

SBI, Airtel Partner For Financial Inclusion
Biztech

SBI, Airtel Partner For Financial Inclusion

SBI's strengths and Airtel's mobile telephony to add value to BFSI sector.

IBM To Power Bharti's Telecom Reign In Africa: Gartner Speaks
Biztech

IBM To Power Bharti's Telecom Reign In Africa: Gartner Speaks

The strategic partnership will enable Bharti Airtel to scale its network and systems to more than 100 million African customers by 2012.

Bharti Airtel's managing director Gopal Vittal elected to the board of global industry body GSMA
Business

Bharti Airtel's managing director Gopal Vittal elected to the board of global industry body GSMA

"Gopal Vittal, MD & CEO (India and South Asia), Bharti Airtel has been elected to the board of GSMA for the 2019-2020 term," Bharti Airtel said in a statement.