Bharti Airtel shareholders approve share swap deal with ICIL to boost Airtel Africa stake
Bharti Airtel shareholders have approved the telecom operator raising its stake to nearly 79% in subsidiary, Airtel Africa.
The transaction will involve Airtel issuing equity shares to Indian Continent Investment Limited (ICIL), a promoter group entity, on a preferential basis, in exchange for its 16.31% stake in Airtel Africa, the Gurugram-headquartered telco said in a regulatory filing.
“The proposal received resounding support from shareholders, including public and institutional investors, reflecting confidence in its strategic rationale and long-term value creation potential,” Airtel said.
The telco further said that the transaction, being a cashless share-swap, presents an opportunity to acquire a large block and increase its “economic interest in a high-growth asset without any incremental leverage or cash outflow”.
The move will further simplify the Group’s shareholding structure and enhance transparency, as per the filing.
“Airtel Africa is central to our growth strategy and is well positioned to deliver robust performance with an increasing contribution to our consolidated revenues,” said Sunil Bharti Mittal, founder & chairman, Bharti Enterprises. “Structured as a share swap, India’s largest ever transaction preserves capital strength for Airtel’s core operations and future growth ambitions.”
Mittal added that the company sees significant potential in Africa for long-term shareholder value creation.
The transaction, upon consummation and subject to receipt of all requisite regulatory approvals, will increase Airtel’s effective stake in Airtel Africa to approximately 79%, according to the filing.
