Bharti Airtel signs agreement to acquire Millicom’s operations in Rwanda
20 Dec 2017
Bharti Airtel, which has been cementing its position inthe African market, has entered into a definitive agreement with Millicom International Cellular S.A. to acquire its 100-per cent stake in Rwanda company, Tigo Rwanda.
The acquisition will consolidate the Rwandan telecom market and position Airtel as a strong number two operator in Rwanda. The consideration for the transaction is based on about 6 times EBITDA multiple, payable over two years.
Over the years Airtel has been strengthening its market position to become a key player in the continent with in-country acquisitions. In the past, Airtel acquired assets in Uganda (Warid) and Congo B (Warid), Kenya (yu Mobile) and consolidated operations in Ghana (Millicom). The customers in these markets today enjoy a superior and wider network, affordable voice & data services, Airtel Money and better customer care.
The agreement is subject to regulatory and statutory approvals.
''Airtel has taken proactive steps in Africa to consolidate and realign the market structure in the last few remaining countries where its operations are lagging on account of lower market share and presence of too many operators. 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,'' Sunil Bharti Mittal, chairman, Bharti Airtel, said.
''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,'' he added.
The existing customers of Tigo Rwanda will join Airtel's global network, which currently serves over 370 million customers across 17 countries. They will enjoy, amongst other things, benefits of the 'One Airtel' network with lower roaming rates across Africa and South Asia, an exciting bouquet of innovative services including Airtel Money.
''The acquisition reinforces our commitment to the Rwanda market and is a significant step towards creating a stronger presence in the country. It will create synergies with our existing business and help boost operational efficiencies in the market. The Rwandan telecom market will significantly benefit from this acquisition, further reiterating our stand that in-market consolidations do not just help achieve better market positions but benefit customers and the industry as a whole,'' Raghunath Mandava, MD and CEO, Airtel Africa, said.
