Connect with us

Headlines of the Day

Airtel plans to sell stake in its Africa mobile unit

Airtel is reportedly planning to sell a stake in its Africa mobile unit.

The telecom operator is also in talks with Qatar Holding LLC to sell a 7.5 percent stake, which is close to $200 million.

This development comes a week after the Supreme Court rejected the AGR application of Airtel, Vodafone-Idea, and Tata Teleservices.

This selling of stake clearly shows that Airtel is exploring ways to reduce its adjusted gross revenue dues.

Notably, Qatar Holding LLC is affiliated with Qatar Investment Authority (QIA).

However, Qatar will infuse wealth via Airtel Mobile Commerce BV, which is a holding company of Airtel’s Africa mobile operations. “QIA will hold a minority stake in AMC BV upon completion of the transaction (alongside other minority investors), with Airtel Africa continuing to hold the majority stake,” Airtel Africa Plc said.

Airtel Africa’s deal with QIA after the company inked a deal with Mastercard Inc, which is close to $100 million. Before, the Mastercard deal, Airtel sold a 7.5 percent stake TPG for $200 million.

However, this transaction needs to go through regulatory approvals.

“QIA as a prospective investor in our mobile money business, joining both Mastercard and TPG’s The Rise Fund as a further partner to help us realize the full potential from the substantial opportunity to bank the unbanked across Africa,” Airtel Africa CEO Raghunath Mandava said.

-Airtel wants to reduce debt-
In addition, Airtel Africa said that it will reduce the group debt and will invest in the network.

The deal aims to look at listing its mobile business in the next four years. Notably, the Airtel Africa deal is expected to close in two tranches, i.e., $150 million for the mobile operations and $50 million will be invested in transfers.

Furthermore, the deal needs to close in August this year.

Airtel, which is the second-largest telecom operator in India is expanding its 4G services and giving tough competition to Reliance Jio.

However, the adjusted gross revenue dues of the company are affecting the financial health and its potential of buying or participating in the 5G spectrum. Gizbot

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2023 Communications Today

error: Content is protected !!