Singtel invests US$250 million in Airtel Africa

Singtel invests US$250 million in Airtel Africa

Singtel invests in Airtel
Singtel has entered into an agreement to invest US$250 million in Airtel Africa Ltd, the second largest telecom operator in Africa.(Photo: TODAY/Reuters)

SINGAPORE: Singtel has entered into an agreement with its regional associate Bharti Airtel (Airtel) to invest US$250 million in Airtel Africa, the second largest telecom operator in Africa.

In a press release on Wednesday (Oct 24), Singtel said it currently holds a 39.5 per cent effective stake in Airtel.

“Our investment into Airtel Africa reflects our confidence in the long-term growth potential of Africa with its young and growing population. For many of Airtel Africa's customers, the mobile phone is the key enabler for digital and financial inclusion," said ​​​​​​​Mr Arthur Lang, CEO of Singtel’s International Group.

"As Airtel continues to execute on its transformation strategy to become a leader in data and mobile money in Africa, we believe it is in a strong position to benefit from increasing smartphone penetration and mobile money adoption.”

With a customer base of 91 million and operations in 14 countries, Airtel Africa also has 11.8 million subscribers to its mobile wallet service.

Singtel's investment forms part of the US$1.25 billion that Airtel has secured from global investors, including Temasek, Warburg Pincus and Softbank Group International, through a primary equity issuance in Airtel Africa, at a post money equity value of US$4.4 billion. The proceeds will be used to reduce Airtel Africa’s existing debt and grow its business ahead of an intended Initial Public Offering.

Source: CNA/ic(mn)

Bookmark