Telecom operator Bharti Airtel on Tuesday said that it has signed an agreement with Millicom International Cellular SA to acquire 100 per cent stake in its Rwanda operation, which operates under the brand name of Tigo Rwanda.
“Bharti Airtel Limited has entered into a definitive agreement with Millicom International Cellular S.A. (Millicom) under which Airtel Rwanda Limited will acquire 100 per cent equity interest in Tigo Rwanda Limited,” Bharti Airtel said in a statement.
Under this deal, Tigo's 370 million customers will join the network of Airtel Rwanda. The acquisition will make Airtel Rwanda the second largest operator in the country with revenues of over $80 million and a revenue market share of over 40 per cent, the statement said.
“The consideration for the transaction is based on approximately 6x EBITDA multiple, payable over two years. The agreement is subject to regulatory and statutory approvals,” the statement said.