Airtel Africa has announced plans to start an Initial Public Offering (IPO) to offset its debt, estimated at USD 5 billion (Ksh500 billion).
So far, six companies have agreed to invest USD 1.25 billion (Ksh125 billion) through a primary equity issuance in the company at a post money equity value of USD 4.4 billion (Ksh440 billion).
Among the companies include Warburg Pincus, Temasek, Singtel, SoftBank Group International and two others.
The present transaction will not involve any sale of shares by existing shareholders, according a a statement sent to newsrooms.
Raghunath Mandava, Africa’s MD and CEO of Bharti Airtel, said that the financial boost will help them upgrade their network infrastructure in Africa.
“The transaction will help us further deleverage our balance sheet and boost our capacity to upgrade networks, expand coverage in different markets and achieve rapid growth of Airtel Money across our operations,” says Mandava.
Airtel Africa is a UK incorporated subsidiary of Bharti Airtel Ltd.
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