Bharti Airtel’s shareholders support raising Airtel Africa stake in a ₹28,200 cr share-swap deal
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Bharti Airtel Limited today announced that nearly 100% of its shareholders have approved the ongoing transaction to consolidate its stake in subsidiary Airtel Africa plc. The transaction involves Bharti Airtel issuing 146.8 million equity shares to Indian Continent Investment Limited, a promoter group entity, on a preferential basis, in exchange for its 16.31% stake in Airtel Africa. The transaction is valued at ₹28,200 crore.
The transaction, upon consummation and subject to receipt of all requisite regulatory approvals, will increase Bharti Airtel’s effective stake in Airtel Africa to approximately 79%. “The proposal received resounding support from shareholders, including public and institutional investors, reflecting confidence in its strategic rationale and long-term value creation potential,” the statement read.
“This represents a continuation of the Company’s calibrated approach to progressively strengthen its ownership in Airtel Africa, a known strategic growth platform in the group,” the statement said.
Sunil Bharti Mittal, Founder and Chairman, Bharti Enterprises, said that the transaction is structured as a share swap. “India's largest ever transaction preserves capital strength for Airtel’s core operations and future growth ambitions.”
“Airtel Africa is well-positioned to deliver robust performance with an increasing contribution to our consolidated revenues,” he said.
Adding further, he said, “The company has always operated at the highest standards of corporate governance and financial discipline, and this overwhelming support reinforces the confidence that the investors have in the organisation. Structured as a share swap, India's largest ever transaction preserves capital strength for Airtel’s core operations and future growth ambitions. As we look ahead, we see significant potential in Africa for long-term shareholder value creation.”
The transaction is a cashless share-swap, which would help to acquire a large block and increase its economic interest in a high-growth asset without any incremental leverage or cash outflow. “It also simplifies the Group’s shareholding structure and enhances transparency, setting a benchmark in corporate governance and capital efficiency.”
The company said that the shareholders’ approval for the ongoing transaction to consolidate its stake in key strategic subsidiary Airtel Africa plc underscores the highest levels of corporate governance at India’s leading communications provider while reinforcing strong investor confidence.