Convener News Desk
Srinagar, June 15: Bharti Airtel Limited on Monday announced that its shareholders have overwhelmingly approved a proposed transaction to consolidate the company’s stake in Airtel Africa plc, paving the way for an increase in its ownership of the African telecommunications business.
According to the company, nearly 100 per cent of shareholders supported the proposal, which involves the issuance of equity shares by Bharti Airtel to Indian Continent Investment Limited (ICIL), a promoter group entity, on a preferential basis. In return, Bharti Airtel will acquire ICIL’s 16.31 per cent stake in Airtel Africa through a share-swap arrangement.
The approval received support from public and institutional shareholders, reflecting investor confidence in the transaction’s strategic objectives and potential for long-term value creation, the company said.
Bharti Airtel stated that the transaction would enable it to acquire a significant stake in Airtel Africa without any cash outflow or additional borrowing, as the deal is structured entirely as a cashless share swap. The company said the move would also simplify the group’s shareholding structure and enhance transparency.
Commenting on the development, Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, said Airtel Africa remains a key component of the group’s growth strategy and is expected to contribute increasingly to consolidated revenues.
He said the strong shareholder support reflected investor confidence in the company’s governance standards and financial discipline. Mittal added that the transaction preserves Airtel’s capital strength for future investments and operational growth while strengthening its position in a market with long-term growth potential.
Upon completion of the transaction and subject to the receipt of required regulatory approvals, Bharti Airtel’s effective stake in Airtel Africa is expected to rise to approximately 79 per cent.
The company described the move as part of its ongoing strategy to gradually increase ownership in Airtel Africa, which it considers a strategic growth platform within the group. Airtel Africa operates across multiple countries on the African continent and contributes to Bharti Airtel’s international business portfolio.
The proposed consolidation represents one of the largest share-swap transactions undertaken by the company and is aimed at strengthening its economic interest in the African business while maintaining financial flexibility.
Comments are closed.