Airtel to Buy Back 8.27% Minority Stake in Nigerian Subsidiary

By Sodeinde Temidayo David

Airtel Africa Plc on Monday announced plans to buy back the 8.27 per cent minority stake in Airtel Networks Limited, its Nigerian subsidiary.

The telecommunications company, in a notice to the Nigerian Exchange (NGX) Limited, said it plans to make the acquisition at an offer price of N55.81 per share.

It further disclosed in the notice that if all the stocks belong to the minority shareholders are released, the transaction would cost about N61.24 billion, equivalent to $148.1 million at an exchange rate of N413.38/$1 at the Investors and Exporters (I&E) segment of the foreign exchange (FX) market in Nigeria.

Airtel Africa Plc is a multinational company that provides telecommunications and mobile money services in 14 countries in Africa, primarily in East, Central and West Africa. This includes various offices in Nigeria, offering mobile voice, data and money services.

Following this development, shares of Airtel Africa on the London Stock Exchange, precisely on the FTSE-250 constituent, a capitalisation-weighted index consisting of the 101st to the 350th largest companies listed on the LSE, were down by 1.8 per cent at 96.60 pence (approximately N534.90) on Monday.

Also, Business Post observed that on the NGX, where shares of the company are also traded, were flat at N715 per unit.

Meanwhile, Airtel Africa has also announced that Mr Olusegun Ogunsanya began his new role as Managing Director and Chief Executive last Friday.

Mr Ogunsanya joined the company in 2012 and was previously chief executive of Airtel Nigeria, responsible for the management of operations in the firm’s largest market. Before joining Airtel, he held leadership roles at Coca-Cola in Ghana, Nigeria, and Kenya.

“I am looking forward to building on the solid foundations the group has established for future sustainable growth across Africa,” commented Mr Ogunsanya.

According to Mr Ogunsanya, Airtel will invest even more in its network and distribution channels to serve the communities where it operates.

He added that by doing this, the group will continue to sustainably bridge the digital divide, expand financial inclusion and meet the evolving needs of customers.

Airtel is set with the vision to enrich the lives of customers, with an obsession to win customers for life through an exceptional experience.