Bharti Airtel has announced that, through its subsidiaries, it has entered into a definitive agreement with Millicom International under which Airtel Rwanda will full acquire Tigo Rwanda. The acquisition will consolidate the Rwandan telecom market and position Airtel as a strong number two operator in Rwanda. 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. 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 USD 80 million and a revenue market share of over 40 per cent, the statement said.
Sunil Bharti Mittal, Chairman, Bharti Airtel, said, Airtel has taken proactive steps in Africa to consolidate and realign the market structure in the last few remaining countries where its operations are lagging on account of lower market share and presence of too many operators. Mittal said Airtel and Tigo have already merged their operations to create a strong viable entity in Ghana and has again taken yet another important step to acquire Tigo Rwanda to become a profitable and a strong challenger in a two-player market.
According to Mittal, Airtel is also committed to the long term viability of its operations in Kenya and Tanzania, to ensure that in 2018 all its 15 operations in Africa start contributing positive margins and cash flows towards a healthy and profitable Airtel Africa. The agreement aims to bring together the strengths of Airtel and Millicom in Rwanda and offer benefits to customers in the form of a wider network, affordable voice and data services, and superior customer care.
On completion, the proposed acquisition will undergo seamless integration, both on the customer as well as the network side, and further strengthen our market position. Over the years Airtel has been solidifying its market position to become a key player in the continent with in-country acquisitions. In the past, Airtel acquired assets in Uganda (Warid) and Congo B (Warid), Kenya (yu Mobile) and consolidated operations in Ghana (Millicom).
The customers in these markets today enjoy a superior and wider network, affordable voice and data services, Airtel Money and better customer care.