DELVE INTO AFRICAN WEALTH
DON'T MISS A BEAT
Subscribe now
Skip to content

Indian billionaire Sunil Bharti Mittal buys back minority shares in unlisted Nigerian subsidiary

Airtel Nigeria is the most profitable subsidiary of Airtel Africa, a leading telecom and mobile money services provider in Africa.

Sunil Bharti Mittal
Sunil Bharti Mittal

Table of Contents

The leading telecom group and mobile money services provider, Airtel Africa Plc, has successfully completed a minority share buyback in its Nigerian subsidiary, Airtel Networks Limited (Airtel Nigeria).

The completion of the share buyback program comes two months after the telecom services provider announced its intention to buy shares held by minority investors in Airtel Nigeria.

Airtel Nigeria is the most profitable subsidiary of Airtel Africa, a leading telecom and mobile money services provider in Africa.

Airtel Africa was founded in 2010 following the acquisition of Zain by Bharti Airtel, a telecom outfit set up by Indian billionaire Sunil Bharti Mittal.

According to a statement issued by the group, the total consideration for the 8.22-percent minority shareholdings acquired under the buyback program is valued at N61 billion, or $147 million.

Upon completing the transaction, Airtel Africa now holds a 99.96-percent ownership interest in its largest subsidiary.

The completion of the share buyback program comes in the same week as its fiercest rival, MTN Group, a South Africa-based multinational telecom company, launched a public offering to sell up to 575 million shares worth $206 million in its Nigerian subsidiary, MTN Nigeria.

The deal will see the South African multinational pocket N84.3 billion ($206 million) from the sale of its shares in the Nigerian subsidiary.

This translates to a significant value unlock for the global telecom major from its most profitable subsidiary, as it moves to open the Nigeria-based telecom behemoth to retail investors in the country.

As of press time, Dec. 3, shares in Airtel Africa on the Nigerian Exchange were worth N950 ($2.31) per share, 53 basis points higher than their opening price on the local bourse this morning.

Latest