Airtel Nigeria announces offer to buy out minority shareholders

Airtel Africa, the wireless operator, has announced that its subsidiary Airtel Nigeria has initiated a process to buy back the 8.27 percent minority shareholdings at $0.13 per share.

The total consideration is estimated to be $0.15 billion, using an exchange rate of NGN 413.38 per US dollar, assuming that all the minority shareholders decide to tender their shares.

The Group Company Secretary, Mr. Simon O’Hara, said in a statement that the total consideration was estimated to be N61.24 billion (using an exchange rate of N413.38) if all minority shareholders decide to tender their shares.

It said: “This represents an open offer to all shareholders.

Airtel Africa is a leading provider of telecommunications and mobile money services, with presence in 14 countries in Africa, primarily in East Africa and Central and West Africa.

It offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services, both nationally and internationally.

The group aims to continue providing a simple and intuitive customer experience through streamlined customer journeys.

At the beginning of the year, Airtel Africa, whose mobile money business on the continent is valued at $2.65 billion on a cash and debt free basis, has entered an equity acquisition pact with The Rise Fund, the global impact investing platform of leading alternative investment firm TPG, in a transaction that will see the latter take ownership of a minority stake in the business.

“The proceeds from the transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries,” Airtel Africa said.

“The Transaction is the latest step in the Group’s pursuit of strategic asset monetization and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years,” Airtel said in the statement signed by Group Company Secretary Simon O’Hara.