Airtel Africa ranks amongst the top 3 mobile service providers globally with nearly 100 million subscribers. It operates in 14 countries across Africa including Nigeria, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon,Madagascar, Niger, Kenya, Malawi, Seychelles, Tanzania, Uganda, Zambia and Rwanda.
It struck an agreement with Qatar Investment Authority to receive $200 million worth of shares through the primary equity issuance.“As a long-term global investor, we are delighted to invest in one of the leading telecommunication companies in Africa. QIA will look forward to supporting Airtel’s vision in building a world class business in the African continent.” said Qatar Investment Authority.
In November 2018, six investors including Warburg Pincus, Temasek, Singtel and SoftBank Group International agreed to invest a total of $1.25 billion worth of shares. Airtel Africa had also constituted a board of directors that includes representatives from Airtel and the global investors.
See Also: MTN, Airtel and Zamtel Fined For Poor Quality of Service In Zambia
Airtel Africa reported a 16.4% increase in its customer base from 84.1 million to 97.9 million customers at the end of 2018. Africa revenues increased by 11.2% (at constant currency exchange rates) to $853 million from $767 million in the final three months of 2017. Its EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) improved from $272 million to $317 million in 2017.
Eight banks has been appointed by Airtel Africa to handle the Initial Public Offering (IPO)process and make its shares available on an unspecified international public stock exchange.
“We are excited to welcome Qatar Investment Authority as a long term strategic equity partner. QIA is a respected global institution with a distinctive lineage and a robust global portfolio. We look forward to a long and fruitful partnership with QIA” said Airtel Africa according to the Economic Times, India.
The telecommunications company aims to raise additional $1.5 to $1.6 billion come June 2019. With this investment from QIA, the net debt of Bharti Airtel will reduce to $3.5 billion and it will expand its 4G network expansion across the continent.
