The proceeds will be used to reduce Airtel Africa’s existing debt of approximately USD 5 billion.
Shares of Bharti Airtel surged 15 percent on the back of investment in its Africa subsidiary by some global investors.
Airtel Africa, a UK incorporated subsidiary of Bharti Airtel, announced that six leading global investors comprising Warburg Pincus, Temasek, Singtel, SoftBank Group International and others have agreed to invest USD 1.25 billion through a primary equity issuance in the company at a post money equity value of USD 4.4 billion, company said in release.
The proceeds will be used to reduce Airtel Africa’s existing debt of approximately USD 5 billion and for growth of its African operations.Airtel Africa subsequently intends an Initial Public Offering and use the proceeds primarily for further reduction of debt.
This investment demonstrates the confidence of leading global investors in the company’s ongoing robust growth and profitability.
Raghunath Mandava, MD and CEO, Africa, Bharti Airtel, said “The transaction will help us further deleverage our balance sheet and boost our capacity to upgrade networks, expand coverage in different markets and achieve rapid growth of Airtel Money across our operations.”
At 15:25 hrs Bharti Airtel was quoting at Rs 315, up Rs 29.10, or 10.18 percent on the BSE.
