Airtel Africa and the 8.27% Minority Shares Buyback in Airtel Nigeria

Proshare

Tuesday, October 05, 2021 / 05:15 PM / by CSL Research / Header Image Credit: Business Today

 

Recently, Airtel Africa, the second-largest mobile operator in Africa by active subscribers, announced plans to buy back the 8.27% minority shareholdings in its subsidiary, Airtel Networks Limited (Airtel Nigeria). Details from the offer document revealed that Airtel Africa is offering N55.81 per share, which by implication, results in a total consideration of N61.24bn (c.US$148.1m at an exchange rate of N413.38/US$) should all minority shareholders sell their shares. At a current price of N715.00/s, Airtel Africa Plc is the third most capitalized stock on the local bourse. While we expect further announcements, we believe it may conduct the share buyback program in tranches given the sizable transaction amount.

 

Airtel Africa has its footprints in 14 African countries, including Nigeria, Niger, Kenya, Congo, etc. The company offers two primary services, telecommunications (mobile voice and data) and mobile money. By the number of countries, the company has its largest base in East Africa with a presence in 6 countries. Nevertheless, Nigeria is Airtel Africa's largest single-country market. This lends credence to the 40% revenue contributed by Airtel Nigeria to the Group revenue as of Q1 2022, trailed by East Africa (35%). In essence, Nigeria remains an attractive market for it to expand its presence.

 

In terms of ownership structure, Airtel Africa held the majority shareholding of Airtel Nigeria at 91.7% with the rest held by minority shareholders as of Q1 2022. In effect, the proposed transaction shows Airtel Africa will have full control and ownership of its subsidiary, Airtel Nigeria. This allows the Group company to promote its 'Win with' strategy to offer extensive and affordable solutions to customers. Meanwhile, Olusegun Ogunsanya, who formerly was the CEO of Airtel Nigeria, assumed the role of the Group CEO and MD on 1 October 2021. Given his stint and exceptional track record at the subsidiary company, we believe he is well capable to drive the company to its destination.


Proshare Nigeria Pvt. Ltd.


Related News

1.    Airtel Africa Notifies of Offer to Buyout Airtel Nigeria Minorities

2.  Airtel Appoints Godfrey Efeurhobo as Chief Commercial Officer

3.  Airtel Africa Appoints Segun Ogunsanya as Chief Executive Officer

4.  Qatar Investment Authority To Invest 200m in Airtel Africa s Mobile Money Busin...

5.  Airtel Africa Plc Reports 142m PAT in Q1 2022 Results Share Price N615.0K ...

6.  Airtel Africa Plc Announces Segun Ogunsanya as CEO CFO to Join the Board...

7.  Airtel Africa Signs $500m Loan Facility

8.  Airtel Africa Signs Agreement to Sell Its Telecoms Tower Companies to Helios Tower Plc

9. The Rise Fund to Invest $200m in Airtel Africa's Mobile Money Business at $2.65bn Valuation

10. Airtel Africa Plc and Telkom Kenya Limited Reconsider Stance on Merger

11.  Airtel Africa Plc Underperforms Analysts Expectations; despite 11.8% Growth in Customer Base

12.  Airtel Africa Plc Announces The Results of the Initial Public Offering of Airtel Malawi Plc

13.   Airtel Africa Plc Issues Pre-Listing Statement In Reference To Malawi Stock Exchange


Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP