Airtel Africa Plc paid N61 billion in buyout deals with Nigerian minority shareholders, according to the latest regulatory filing.
In a statement issued on Thursday, Airtel Africa announced the completion of the buyouts deal as sources predict the telecom giant possible delisting from the Nigerian Exchange.
Today, the telco firm told the investing public and the Nigerian Exchange that further to the buyout offer announcement of 4 October 2021, the group has completed the minority shareholding buyback of Airtel Networks Limited, a subsidiary of Airtel Africa.
It stated further that total consideration for the 8.22% minority shareholdings acquired under the buyback is N61 billion, equivalent to $147 million using an exchange rate of N415.07 to a United States dollar.
According to detail of its latest filing, Airtel Africa now holds 99.96% ownership over its largest subsidiary. Cordros Capital said in its recent valuation that Airtel enjoys a better valuation above MTN Nigeria Plc – the industry’s leader in the telecommunication segment.
While Airtel Africa purchased back its shares from Nigeria, MTN Nigeria is deepening its retail base by selling to Nigeria additional 575 million shares, accounting for 2.8% of the planned sell-down of the group holdings in the local operation.
MTN Group told analysts at the earnings conference call that 14% of its holdings in Nigeria will be sold to locals in three series. On Monday, it opened the first series for subscriptions after bookbuilding.
Since Airtel Africa will not trade with itself, it is more likely that the company will delist its shares from the local bourse soon, analysts projected.
Credit: dmarketforces.com
