Bharti Airtel's acquisition of Millicom to consolidate telecom market in Rwanda
The new entity, Airtel Rwanda, will consolidate Rwandan telecom market and make Airtel the second largest telecom operator in the African country.
- Dec 19, 2017,
- Updated Dec 19, 2017 1:34 PM IST
Indian telecom giant Bharti Airtel, which operates in nearly 17 countries, entered into a definitive agreement with Millicom International Cellular S.A. to acquire 100 per cent equity stake in its Rwanda operation. Millicom operates under the brand name of Tigo Rwanda. The new entity, Airtel Rwanda, will consolidate Rwandan telecom market and make Airtel the second largest telecom operator in the African country.
Acquisition of Tigo Rwanda is expected to add revenues of over $80 million for Bharti Airtel and increase revenue market share to over 40 per cent. "The consideration for the transaction is based on approximately 6x EBITDA multiple, payable over two years," Bharti Airtel said in a statement to the stock exchanges.
Airtel at present operates in 15 African countries apart from India and South Asia. "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," Bharti Airtel Chairman, Sunil Bharti Mittal said.
The existing customers of Tigo Rwanda will join Airtel's global network, which has over 370 million subscribers worldwide. The new customers get the benefits of 'One Airtel' network with lower roaming rates across Africa and South Asia.
Airtel has been on an acquisition spree in Africa, India's largest telecom operator had earlier acquired assets in Uganda (Warid) and Congo B (Warid), Kenya (yu Mobile) and consolidated operations in Ghana (Millicom).
"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," Mittal said.
With presence in 15 African countries, Airtel is one of the largest telecom service providers across the continent in terms of geographical reach and had close to 83 million customers at the end of quarter ended September 30, 2017, the statement said.
Indian telecom giant Bharti Airtel, which operates in nearly 17 countries, entered into a definitive agreement with Millicom International Cellular S.A. to acquire 100 per cent equity stake in its Rwanda operation. Millicom operates under the brand name of Tigo Rwanda. The new entity, Airtel Rwanda, will consolidate Rwandan telecom market and make Airtel the second largest telecom operator in the African country.
Acquisition of Tigo Rwanda is expected to add revenues of over $80 million for Bharti Airtel and increase revenue market share to over 40 per cent. "The consideration for the transaction is based on approximately 6x EBITDA multiple, payable over two years," Bharti Airtel said in a statement to the stock exchanges.
Airtel at present operates in 15 African countries apart from India and South Asia. "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," Bharti Airtel Chairman, Sunil Bharti Mittal said.
The existing customers of Tigo Rwanda will join Airtel's global network, which has over 370 million subscribers worldwide. The new customers get the benefits of 'One Airtel' network with lower roaming rates across Africa and South Asia.
Airtel has been on an acquisition spree in Africa, India's largest telecom operator had earlier acquired assets in Uganda (Warid) and Congo B (Warid), Kenya (yu Mobile) and consolidated operations in Ghana (Millicom).
"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," Mittal said.
With presence in 15 African countries, Airtel is one of the largest telecom service providers across the continent in terms of geographical reach and had close to 83 million customers at the end of quarter ended September 30, 2017, the statement said.