NEW DELHI: Nearly all shareholders of Indian telecom giant Bharti Airtel on Monday approved the ongoing transaction to consolidate its stake in key strategic subsidiary Airtel Africa plc, indicating strong investor confidence.
The transaction involves Bharti Airtel issuing equity shares to Indian Continent Investment Ltd, a promoter group entity, on a preferential basis, in exchange for its 16.31% stake in Airtel Africa. Upon consummation and subject to all approvals, the transaction valued at ₹28,200 crore will increase Bharti Airtel’s effective stake in Airtel Africa to about 79% — up from the current 62.73%.
Strategic Importance of Airtel Africa
Bharti Enterprises founder and chairman Sunil Bharti Mittal said: “Airtel Africa is central to our growth strategy and is well positioned to deliver robust performance with an increasing contribution to our consolidated revenues. 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 organization.”
Structured as a share swap, this transaction is India's largest ever and 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,” Mittal added.
Shareholder Support and Benefits
The company said the proposal has received “resounding support from shareholders, including public and institutional investors, reflecting confidence in its strategic rationale and long-term value creation potential.”
Being a cashless share-swap, the transaction “presents an opportunity 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.”
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