Business

Bharti Airtel Plans Acquisition Of Millicom’s Operations In Rwanda

AASTHA SINGAL | 0
2100
| December 19 , 2017 , 12:15 IST

Telecom operator Bharti Airtel is all ready to strengthen its Africa operations by acquiring 100 percent stake in Millicom International Cellular S.A. in Rwanda. Following the acquisition, Airtel Rwanda will become the second largest operator in the country with the revenues of over $80 million and market share of over 40%.

Millicom International Cellular S.A. operates under the brand name of Tigo Rwanda in the country. In an official statement, Bharti Airtel said, "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."

The deal will get Airtel Rawada Tigo’s 370 million customers, making the company second largest operator in the country. "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 added.

Currently, Airtel is functional in 15 African countries apart from India and South Asia. Bharti Airtel Chairman, Sunil Bharti Mittal stated, "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."

In the past, Airtel has acquired assets in the past from Warid in Uganda and Congo B, from yu Mobile in Kenya and consolidated operations from Millicom in Ghana. The statement verified that Airtel already is one of the largest telecom service providers across the continent in terms of geographical reach with 83 million customers as of September 30, 2017.

Mittal stated, "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."