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Airtel Africa completes Airtel Nigeria minority buyout offer

Airtel Africa Plc has completed a buyout of minority shareholders in Airtel Networks Limited (Airtel Nigeria), strengthening its strategic hold on its largest market as telecommunication companies set to open new competitive vista in Nigeria’s digital banking space.

In a regulatory filing signed by Airtel Africa’s Group Company Secretary, Simon O’Hara, Airtel Africa stated that it now owns 99.96 per cent stake in Airtel Nigeria, its largest subsidiary.

Airtel Africa, with presence in 14 African countries, acquired 8.22 per cent minority shareholdings under the Airtel Nigeria minority buyback at a total consideration of N61 billion, equivalent to $147 million using an exchange rate of N415.07 per dollar.

Airtel Africa had on October 4, 2021 announced the plan to buyback 8.27 per cent minority shareholdings in Airtel Nigeria at an offer price of N55.81 per share from its subsidiary, Airtel Networks Limited (Airtel Nigeria).

The buyback came as telecommunications companies seek to play more active roles in the financial services sector. The Central Bank of Nigeria (CBN) recently gave approvals-in-principle to the two leading telecommunication groups, Airtel Africa and MTN Nigeria Telecommunications, to run payment service bank (PSB) and operate as super-agent in the increasingly competitive Nigerian digital banking space.

The approval-in-principle allows Airtel Africa, with mobile money business of more than $2.65 billion across Africa, to accelerate its roll out plan and bring its huge subscribers’ base to a new era of convenience banking across the nooks and crannies of Africa’s most populous country. The Nation

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