Telecom operator Bharti Airtel Tuesday stated that it has signed an settlement with Millicom International Cellular S.A. to purchase 100 % stake in its Rwanda operation which operates beneath the model identify 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 percent equity interest in Tigo Rwanda Limited,” Bharti Airtel stated in an announcement.
Under this deal, Tigo’s 370 million clients will be part of the community of Airtel Rwanda. The acquisition will make Airtel Rwanda the second largest operator in the nation with revenues of over $80 million (roughly Rs. 512 crores) and a income market share of over 40 %, the assertion stated.
“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 assertion stated.
Airtel at current operates in 15 African nations other than 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 stated.
In the previous, Airtel acquired belongings 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 stated.
Airtel is without doubt one of the largest telecom service suppliers throughout the continent in phrases of geographical attain and had shut to 83 million clients on the finish of quarter ended September 30, 2017, the assertion stated.
Adapted From: Gadgets360